Pepe Coin price crashed below an important support level and could be at risk of more downside as investors dump their tokens. It plunged to a low of $0.0000050, down sharply from the year-to-date high of $0.000028.
Pepe, the second-biggest meme coin on the Ethereum network, has been in a strong sell-off that has mirrored the performance of other similar tokens. A closer look shows that Shiba Inu and other top meme coins like TRUMP and Bonk have all plunged.
The token has also plunged as more investors moved their tokens to exchanges. Data compiled by Nansen shows that there are now 248.86 trillion tokens in exchanges, up from this month’s low of 247.98 trillion. This means that over 820 billion Pepe tokens have been sold in the past few days.
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At the same time, smart money investors have continued dumping their tokens. The numbers show that these investors now hold 243.21 billion tokens, down from this month’s high of 250 billion. They have dumped over 7 billion tokens, while whales are no longer interested in the coin.
More data shows that the weighted funding rate has remained in the negative zone. That is a sign that investors believe that the future price will be lower.
Additionally, Pepe Coin’s futures interest has dropped to $174 million, down from the July high of $991 million. That is a sign that investors are still concerned about the potential liquidation and the ongoing crypto bear market.
Pepe Coin Price Technical Analysis
The daily timeframe chart shows that the Pepe price has been in a strong bearish trend. It has formed an inverse cup-and-handle pattern, a popular bearish continuation sign.
The coin has also formed a head-and-shoulders pattern. It has also formed a death-cross pattern.
Therefore, the most likely situation is where the coin continues falling in the near term. This view will be confirmed if the price drops below the current level. On the flip side, a move above the resistance at $0.000010 will invalidate the bearish outlook.
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