Pepe Coin (PEPE), the third-largest meme token by market capitalization, has drawn renewed scrutiny from digital asset markets as it enters a distinctly precarious phase. Despite periods of viral enthusiasm, PEPE has now formed a prominent descending triangle pattern on the daily chart—often interpreted in technical circles as a classic bearish continuation signal.
After peaking near $0.00001667 in May, PEPE’s market value has collapsed almost 50%, touching lows around $0.0000091—levels not seen since late June. The most significant pressure on PEPE originates with large-scale holders: on-chain analytics reveal whales have trimmed their positions from 7.6 trillion to 6.54 trillion tokens over the past several months.
The exodus extends to so-called “smart money” investors, whose PEPE holdings have dropped from 2.6 trillion in August to 1.62 trillion at present. This orchestrated selling by both whales and informed investors is generally considered a red flag, often foreshadowing extended periods of downside volatility.
Volume data corroborates this bearish thesis. Derivatives market open interest for PEPE futures has plunged to $557 million, sharply lower than the $1 billion mark seen in July. Spot market volumes mirror this retreat, confirming a decline in speculative participation and overall investor demand.
Technical momentum is unmistakably to the downside. As the daily price action dwells below both the 50-day and 100-day exponential moving averages, the Average Directional Index (ADX) has climbed, indicating that the prevailing downtrend is gaining strength. The descending triangle’s horizontal support now aligns with PEPE’s multi-month lows; should the pattern break decisively, technical targets suggest a move toward $0.0000059—the previous foundational level observed in early April.
For traders and investors, PEPE’s outlook serves as an instructive case in token lifecycle risk. As whale selling intensifies, the probability of a deeper breakdown escalates, demanding heightened vigilance from market participants. While meme coins like PEPE can revive as quickly as they fade, the current signals point to a market in retreat, not renewal.
Source:geckoterminal
