Why Pepe Coin Might Face a Decline
Pepe Coin, the third-largest meme coin on the market, faces a potential 30% drop due to major holders reducing their positions and a decline in active addresses. Despite a recent recovery of over 40%, bearish technical signals suggest an imminent downturn.
Major Holders Selling Pepe Coin
Decreasing Positions Among Key Players
According to Santiment, the supply of tokens held by major addresses has dropped from over 45 billion to 39.78 billion. This reduction indicates that key holders are selling their positions, putting downward pressure on the price.
Data from IntoTheBlock further reveals that new addresses associated with Pepe Coin decreased by 13.21% in the past week, while active addresses fell by 3.90%. These figures highlight waning investor interest and expectations of further price declines.
Declining Interest Among Smart Investors
Following its all-time high, the number of smart investors holding Pepe Coin has significantly dropped. Currently, only 90 large holders remain, down from nearly 110 a few weeks ago. This trend raises concerns about the coin's future price trajectory.
Pepe Coin Chart Indicates Risk of a Drop
Bearish Wedge and Key Resistance Levels
On the 4-hour chart, Pepe Coin formed a double-top pattern at $0.00002190, corresponding to the 50% Fibonacci retracement level. This resistance zone has proven critical, and the price is now forming a rising wedge, a bearish pattern.
The upper trendline connects the highest peaks since December 24, while the lower side tracks the lowest levels since December 21. As these levels converge, the likelihood of a bearish breakout increases.
Pepe Coin Forecast: Key Price Levels
A 30% Drop on the Horizon?
Technical analysis suggests that if Pepe Coin's price breaks below the lower side of the wedge and the 50-period moving average at $0.00002020, a significant decline could follow. This could bring the price down to the December low of $0.00001433, representing a drop of approximately 30%.
Upside Potential Still Exists
On the other hand, the bearish scenario will be invalidated if Pepe Coin breaks above the resistance at $0.00002190, this month’s highest level. In that case, the price could rise to $0.00002535, representing a 22% increase from current levels.
Conclusion
Pepe Coin faces considerable downside risks as major holders reduce their positions and technical indicators point to a bearish trend. However, a breakout above key resistance levels could push the price higher. Investors should closely monitor the critical support and resistance levels in the coming days.
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