Pepe price continues to underperform the market at a time when it should be booming. It was trading at $0.000012 on Wednesday, down by over 25% from its highest point this year. This article explains why it is at risk despite the ongoing Ethereum price surge and whale buying.
Pepe Whales are Buying as Ethereum Price Surges
In theory, these should be the best periods for Pepe Coin. For one, the Ethereum price has skyrocketed and is slowly approaching its all-time high. This surge happened as top Ethereum Treasury companies like BitMine and SharpLink continued to accumulate ET. BitMine is even raising over $20 billion for this buying spree.
Ethereum price has also jumped because of the ongoing ETF inflows, with investors buying over $1 billion worth of tokens on Monday. All this is happening as the supply of ETH on exchanges falls.
Historically, meme coins on Ethereum and Solana do well when the ETH and SOL prices are in a strong bull run. In this case, Pepe is the second-biggest Ethereum meme token and should be thriving.
Meanwhile, data shows that whales have been on a buying spree in the last four weeks. Whale holdings have jumped from 8.76 trillion tokens to 9.22 trillion today, bringing their acquired tokens to 440 billion.
The same is true with smart money investors who hold 663 billion tokens, up from 615 billion last month. These investors, who are known for buying low, have acquired almost 50 billion Pepe coins.
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Why Pepe Price is at Risk of a Crash
The daily chart shows that the Pepe price has moved sideways, even as Ethereum surges. A closer look shows that the token has formed the highly bearish pattern known as a head-and-shoulders
The left shoulder is at $0.0000932, while the right one is at $0.00001495, and the head is at $0.0000163. The neckline is slanted, connecting the lower lows since March this year.
Therefore, the Pepe coin price will likely have a strong bearish breakdown, with the initial target being the left shoulder point at $0.00009329. A crash below that level will point to a further plunge to the year-to-date low of $0.000005835, which is 52% below the current level. A move above the right shoulder will invalidate the bearish Pepe forecast.
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