Pepe Coin’s price has dived by 76% from its November high into December, and a combination of technical and fundamental factors points to a steeper crash in the near term.
Summary
- Pepe Coin price has formed a large head-and-shoulders pattern.
- It also formed a descending triangle pattern on the daily chart.
- Whales have dumped, while the futures open interest has slumped.
Pepe Coin price technicals hints at further downside
Pepe Coin (PEPE) token has plunged in the past few weeks, moving from a high of $0.00001667 in May to the current $0.0000067.
The price has moved below the key support at $0.0000091, the lower side of the descending triangle pattern. Also, the token has dropped below the 50-day and 200-day moving averages. The price has remained below both averages after forming a death cross pattern on August 27.
One of the top technical risks is that Pepe Coin’s price has been forming a head-and-shoulders pattern since March last year. This pattern’s head was at $0.00002840, while the shoulders were at $0.00001692. The neckline was at $0.0000057.
Therefore, the most likely Pepe price forecast is bearish, with the initial target at $0.000005754. A plunge below that level will point to further downside, potentially to this month’s low at $0.000002793.
The bearish Pepe Coin price prediction will become invalid if the price moves above the key resistance level at $0.00000911.
Falling demand and whales exiting
Fundamentals also suggest that the coin has more downside in the near term. For example, Nansen data suggests that whales and smart money investors have dumped their tokens recently.
Whales have reduced their holdings by 20% in the last 30 days to 4.89 trillion. They held over 6.13 trillion tokens at the highest level in September.
Public figure investors have continued to dump their tokens, a sign that they expect the crash to continue. They hold 91.94 billion tokens, down from 92.5 billion last week and 100.8 billion at the highest level in September.
Smart money investors have also sold their Pepe tokens, reducing their holdings by 38% in the last 30 days.
Additionally, CoinGlass data reveals that the weighted funding rate has remained in the negative zone in the past few days. Also, the futures open interest has plummeted to $250 million, down sharply from the July high of $1.02 billion. The futures open interest has moved to the lowest level since April 10.
The daily trading volume has also moved from the year-to-date high of $5 billion to less than $600 million today. All these are signs that the coin’s demand has largely evaporated.
