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- PEPE is forming a bearish head and shoulders pattern with RSI divergence.
- Whale investor exits and declining futures OI signal market weakness.
- A potential rebound depends on Bitcoin and Ethereum recovery.
Pepe (PEPE), the frog-themed memecoin, is showing signs of a potential sharp correction as the broader crypto market struggles. Market analysts warn that the token may see a significant decline, with on-chain data pointing to declining demand and major whale sell-offs.
Technical Warning Signals for PEPE
According to crypto analyst Aksel Kibar, PEPE is forming a head and shoulders (H&S) pattern on the weekly chart—a classic bearish indicator. Coupled with a bearish RSI divergence, this suggests that Pepe could soon test lower support levels, with a potential price target of $0.0000146.
Technical indicators are critical for traders eyeing short-term market moves. Analysts emphasize caution, especially as memecoins like PEPE remain highly sensitive to market sentiment swings.
Whale Capitulation Fuels Bearish Pressure
On-chain data highlights a major whale exit: investor 0x2f3 moved the last $3.7M worth of PEPE to Coinbase, closing out a position once valued at $46 million. This action reflects growing fear among large holders amid the overall crypto market capitulation.
$PEPE whale capitulates, sending entire bag to Coinbase
— Emmett Gallic (@emmettgallic) November 12, 2025
Address 0x2f3 just moved their final $3.7M worth of PEPE to Coinbase, completely exiting their position after holding since at least June 2024
At peak, this wallet controlled $46M worth of PEPE pic.twitter.com/3kKbxnKuJq
The sell-off from top investors has coincided with declining memecoin demand, leaving smaller traders wary and adding downward pressure on price.
Deleveraging Amid Broader Market Weakness
Pepe’s Futures Open Interest (OI) has plunged from nearly $1 billion to approximately $194 million in 2025, indicating a strong deleveraging trend. The drop aligns with a broader crypto liquidity crunch and Bitcoin’s recent weakness against Gold.
Despite these challenges, analysts note that PEPE could find support at its current range. A rebound may occur if Bitcoin and Ethereum recover, particularly if influenced by potential Fed policy shifts.
While PEPE faces intense short-term downward pressure, traders should monitor technical levels and broader market trends. If the crypto market stabilizes and major coins recover, Pepe could rally toward new highs, but caution remains critical amid volatile conditions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: PEPE: Analyst Predicts Pepe Coin Could Soar 40X to $0.00039 Despite Whale Sell-Off
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
