Pepe Coin price remains under pressure below a key support level as it formed a bearish pattern despite the ongoing whale accumulation.
Summary
- Pepe Coin price has formed an alarming head-and-shoulders pattern on the weekly chart.
- Still, whales have continued buying the token in the past few weeks.
- The supply of Pepe tokens on exchanges has continued falling in the past few days.
Pepe Coin (PEPE), the second-biggest Ethereum meme coin, dropped to $0.000004512, down by 85% from its highest level this year. It is hovering near its lowest level since April last year.
Pepe token has plunged this year because of the ongoing crypto market crash that has affected most tokens, especially meme coins, including Shiba Inu and Dogecoin.
On the positive side, there are signs that whales have started to accumulate the token as they expect it to rebound. Data compiled by Nansen shows that whales now hold 4.44 trillion tokens today, up from 4.41 trillion in November. This means that they have bought 30 billion tokens in this period.
At the same time, there are signs that the supply of Pepe Coins in exchanges has started to drop in the past few weeks, ending a prolonged period of inflows. Data shows that there are now 258.2 trillion tokens in exchanges, down from last month’s high of 259.10 trillion. Falling exchange supply is a sign that investors are buying the dip and moving their tokens to exchanges.
Still, the risk is that smart money investors have continued to dumb their tokens. These investors now hold 182.17 trillion tokens, down sharply from this month’s high of 184.47 trillion tokens.
Pepe Coin price technical analysis
The weekly chart shows that the Pepe Coin price has been under pressure in the past few months, moving from the all-time high of $0.00002832 in December to the current $0.000045.
It has moved below the important support level at $0.0000052. This level was notable as it was along the neckline of the head-and-shoulders pattern, whose head is at $0.002832 and the shoulders are at $0.00001665.
The token has also formed a small bearish pennant pattern, which is made up of a vertical line and a small triangle pattern. Therefore, the token will likely continue have a strong bearish breakdown in the coming weeks, potentially to the year-to-date low of $0.000002797.