Pepe Coin price continued dropping today, July 30, as most meme coins plunged. It is in the second consecutive week in the red, and technicals point to a deeper dive after forming the highly bearish head-and-shoulders pattern.
The bearish Pepe price forecast is also based on the fact that whales have stopped or paused their recent accumulation.
Pepe Coin Price Weekly Chart Points to a Bearish Breakdown
The weekly chart shows that the Pepe Coin price surged and peaked at a record high of $0.00002815, its highest swing in December last year. It then plunged and found a bottom at $0.000005678.
A closer look shows that the token has formed the highly bearish head-and-shoulders pattern. This pattern’s head is at $0.00002815, while the right and left shoulders are at $0.00001700. The neckline is at $0.000005678.
This pattern often leads to a strong bearish breakdown over time. The price target is usually established by measuring the distance between the head and the neckline and then the same one from the neckline.
In Pepe’s case, the distance between the head and the neckline is about 80%. Measuring the same distance from the neckline yields a target price of $0.000001092, which is approximately 90% lower than the current level. This target price is the lowest it has been since February last year and will be confirmed if it moves below the neckline.
The bearish Pepe price forecast 2025 will become invalid if it jumps above the right shoulder at $0.00001700. Soaring above that level will point to more gains, potentially to the all-time high of $0.00002815.
Whale Accumulation is Slowing
On-chain data shows that the momentum among whales and smart money investors is slowing. While whale accumulation has jumped by 10% in the last 30 days to 8.85 trillion, the trend has moved sideways in the past few weeks.
Whale buying is often seen as a top catalyst in the crypto market because of their experience. These investors often buy when an asset’s price is low and then sell when it is at a higher price.
Additional data indicates that demand for the Pepe Coin is declining. CoinMarketCap data shows that its 24-hour volume tumbled by 20% to $728 million. This decline is also happening in the futures market where the open interest has tumbled to $663 million from this month’s high of over $1.09 billion.
Another macro factor is that the Federal Reserve will likely not cut interest rates in its meeting on Thursday. The case for a more hawkish Fed gained momentum after the US released strong second-quarter GDP data and non-farm private payrolls data.
Still, there is a major risk to the bearish Pepe Coin price forecast. For one, there are signs that the Bitcoin price is about to breakout after forming a bullish pennant pattern. Such a price action will lead to more gains among altcoins like Pepe.
Frequently Asked Questions (FAQs)
The weekly chart shows that the Pepe price has formed a head-and-shoulders pattern, pointing to more downside in the long term.
The most likely target for the Pepe token is $0.000001092, which is based on the distance from the head and shoulders, and the same one from the neckline.
The main risk for the Pepe price is a potential Bitcoin price rebound as it formed a bullish pennant pattern.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
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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