The ongoing PEPE price gains are a corrective move following a massive drop in price last week. An analyst now says this correction might not last. This comes as whale dominance tumbles to the lowest level since 2023 as short positions build up.
Pepe Coin Price Outlook as Analyst Forecasts Crash
Pepe Coin price trades at $0.0000106 today, with a 1.59% gain at the time of reporting. Analyst Matthew Dixon notes Pepe Coin is standing at a make-or-break point. Looking back at last month’s performance, he points to a bearish divergence on the RSI as a trigger behind the drop from $0.00001448 to $0.0000106 in just two weeks.
He says that because of this crash, two things could happen: the price will continue with the downside or start to bounce. However, the trajectory that the Pepe Coin price takes will depend on whether or not support will hold.
Dixon’s analysis places the support zone between $0.00001 and $0.0000095. He notes that if this top meme coin drops below here, the acceleration to the lower side will be intense. Losing this zone could create panic sellers who force the price to $0.000007.
However, he adds that if there is a chance for bulls to retake control, the resistance zone between $0.0000115 and $0.000012 will play a pivotal role. Reclaiming thus could commence a larger move. However, the main sign that this is going to happen is a bullish divergence with the RSI.
The analyst notes that under current conditions, Pepe Coin is firmly locked in a make-or-break zone in the short term. However, the long-term Pepe Coin price forecast for 2025 and beyond suggests the tides could eventually turn in favor of bullish traders.
Whale Dominance Hits 2023 Lows, Fuelling Bearish Outlook
Whale dominance in Pepe Coin has taken a noticeable hit. According to IntoTheBlock, large holders now control just 43% of the supply, the lowest level since December 2023.
What this data suggests is that big-money players are pulling back from PEPE, leaving room for retail traders to take the lead. When this happens, volatility usually picks up. Unlike whales, who often hold long-term positions, retail investors tend to react to short-term sentiment, which means the Pepe Coin price could struggle to hold onto any gains for long.
The whale exit has not happened in isolation. It has been accompanied by growing bearish sentiment. According to Coinglass, the long/short ratio has dropped to its lowest level in two weeks. On Binance, there has been a clear uptick in traders opening short positions, signaling expectations of further downside.
Given these conditions, Dixon’s forecast of a potential drop to $0.000007 might not be far off. With more traders betting against the price and whales stepping back, the stage could be set for Pepe Coin to slide further in the short term.
Frequently Asked Questions (FAQs)
Pepe Coin price might crash further if whales continue to dump the token and there is no adequate retail demand to absorb the sold coins.
Whales are likely selling PEPE because of a bearish technical outlook and the lack of significant gains recently.
The most crucial support zone for PEPE price lies between $0.00001 and $0.0000095.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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