Pepe, the third-largest meme coin by market cap, dropped to its lowest level since November 13 as whales sold off their holdings, pushing exchange balances higher.
Pepe (PEPE) dropped to a low of $0.00001210, down by over 54% from its highest level in December.
Data from Nansen shows that the amount of Pepe coins on exchanges increased, indicating continued selling pressure from investors. Tokens on exchanges rose by 1.31% to 240.28 trillion, up from 237.18 trillion a week earlier. The total supply on exchanges climbed by 0.74% to 57.12%.
Further data reveals that Pepe whales have been offloading their holdings. According to Lookonchain, several whales moved their holdings to exchanges, suggesting that these investors expect the downward trend to persist.
Meanwhile, smart money investors have also been reducing their positions. The number of smart money holders has dropped to 69, down from 91 in December. These investors now hold 9.5 trillion Pepe coins, a decline from nearly 12 trillion in March last year.
Pepe’s crash has coincided with declines in other meme coins. For example, Shiba Inu (SHIB) has fallen by 45% from its November high, while Bonk has dropped by 57% during the same period.
These meme coins may still bounce back if Bitcoin (BTC) gains momentum from a relatively dovish Federal Reserve.
Pepe coin price formed a risky pattern
The daily chart shows that Pepe has formed the bearish head and shoulders pattern. This pattern consists of a head, two shoulders, and a neckline. The coin has now moved below the neckline at $0.00001716.
Pepe is also nearing the formation of a death cross pattern, which occurs when the 200-day and 50-day weighted moving averages cross each other. The gap between the two averages has continued to narrow, suggesting the pattern could emerge if the sell-off persists.
Additionally, Pepe has moved to the major support and resistance (S&R) pivot point of the Murrey Math Lines. Both the MACD and the Relative Strength Index (RSI) have continued to decline. Therefore, the coin is likely to extend its losses, with traders targeting the key support at $0.0000060, its lowest level in August.
