Pepe price has crashed by 65% from its all-time high and is at risk of more downside as smart money investors flee and a death cross nears.
Pepe (PEPE) dropped below the key support level at $0.000011 and is hovering near its lowest level since Nov. 7 last year.
Nansen data shows that the number of smart money investors holding Pepe has dropped to 68, down from last year’s high of 91. Similarly, the number of tokens these investors hold has dropped from 12.32 trillion in February last year to 9.52 trillion.
Pepe’s performance aligns with that of other Ethereum (ETH) meme coins like Shiba Inu (SHIB), Floki (FLOKI), and Dogelon Mars. These tokens have plunged as investors focus on Solana meme coins like Fartcoin, Official Trump, and Dogwifhat.
The ongoing Pepe crash has also led to a big 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.
Pepe coin price is about to form a death cross
Worse, technicals 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. A death cross is one of the most bearish patterns in the market, as it shows that an asset is not finding bids.
Pepe has also moved below the lower side of the descending channel, another risky sign. Further, the Average Directional Index has risen to 27, indicating the downtrend is strong. The Relative Strength Index is also nearing the oversold level.
Therefore, the coin will likely continue falling, with the next reference point to watch being at $0.0000059, its lowest level in August last year. Such a move would point to a 45% crash below the current level.
On the positive side, Pepe is forming a falling wedge pattern, pointing to a rebound in the future. The wedge pattern will remain intact as long as it is inside of the two descending trendlines.
