Pepe Coin Price Plummets 65% from All-Time High, Further Downside Expected

The Pepe coin price has experienced a significant decline, dropping 65% from its all-time high and is at risk of further downside movement. This downward trend is largely attributed to the exodus of smart money investors and the imminent formation of a death cross pattern.

Decline in Smart Money Investors and Token Holdings

According to data from Nansen, the number of smart money investors holding Pepe has decreased to 68, down from last year’s high of 91. Additionally, the number of tokens these investors hold has dropped from 12.32 trillion in February last year to 9.52 trillion. This decline in investor interest and token holdings has contributed to the coin’s downward trajectory.

Alignment with Other Ethereum Meme Coins

The performance of Pepe aligns with that of other Ethereum meme coins, such as Shiba Inu, Floki, and Dogelon Mars, which have also experienced significant declines. Meanwhile, investor focus has shifted to Solana meme coins like Fartcoin, Official Trump, and Dogwifhat.

Drop in Futures Open Interest and Technical Indicators

The ongoing Pepe crash has led to a substantial drop in futures open interest, a sign of waning demand. Open interest dropped to $282 million on Tuesday, down from the year-to-date high of $556 million. Technical indicators also suggest that the Pepe coin price is about to form a death cross pattern, as the spread of the 50-day and 200-day Weighted Moving Average narrows.

Risk of Further Downside Movement

Pepe has moved below the lower side of the descending channel, indicating a high-risk scenario. The Average Directional Index has risen to 27, indicating a strong downtrend. The Relative Strength Index is also nearing the oversold level. These technical indicators suggest that the coin will likely continue falling, with the next reference point to watch being at $0.0000059, its lowest level in August last year.

Potential for Future Rebound

On the positive side, Pepe is forming a falling wedge pattern, which could indicate a rebound in the future. The wedge pattern will remain intact as long as it is inside of the two descending trendlines.

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Tips for Pepe Investors:

  • Monitor the death cross pattern and its potential impact on the coin’s price.
  • Keep an eye on the futures open interest and its relation to demand.
  • Consider the technical indicators, such as the Average Directional Index and Relative Strength Index.
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