The Pepe Coin price has crashed to a critical support level, indicating a potential for a steeper decline after forming a descending triangle, and whales initiate a selling spree.
Summary
- Pepe Coin price has formed a descending triangle pattern on the daily chart.
- On-chain data shows that whales have continued selling Pepe tokens.
- Similarly, smart money investors are selling, while the supply in exchanges has jumped.
Pepe Coin price has formed a risky pattern
Pepe (PEPE), the second-biggest meme coin on Ethereum (ETH), plunged to a low of $0.000009155. That’s its lowest level since June 22 this year.
The meme coin plunged by over 45% from its highest point this year and by 68% from its 2024 highs.
The daily timeframe shows that the Pepe price dropped to a low of $0.000009017. This is a significant level, as it coincides with the lowest levels in June and September.
A closer examination of this chart reveals that the coin’s pattern consists of a horizontal support and a descending trendline that connects the highest swings since May 22.
The profit target in a descending triangle pattern is established by first measuring the distance of the widest part and then the same distance from the triangle’s lower line.
In this case, the distance is 45%, bringing the target price into $0.000004767. A crash to this level will be confirmed if it drops below the key support at $0.0000052.
Whales are dumping Pepe tokens
On-chain data show that whale investors have continued to dump Pepe tokens this year. According to Nansen, whales now hold about 6.55 trillion tokens, their lowest holdings in months.
They held over 7.6 trillion tokens on the same day in August this year. Similarly, smart money investors, who have a reputation for making profitable trades, have dumped their positions to 1.66 trillion.
The ongoing dumping by these investors is having an impact on the exchange supply. There are now 253 trillion Pepe coins in exchanges, up from 252.4 trillion earlier this month. A jump in exchange supply is a signal that investors have given up on Pepe and are selling it.
