Pepe Price Faces Major Downturn as “Death Cross” Looms and Smart Money Investors Exit

The price of Pepe coin has plunged by 65% from its all-time high, currently hovering near its lowest point since November 7, 2024. The decline is driven by significant selling pressure, including a sharp exit from smart money investors and the formation of a death cross on technical charts, signaling further downside risk.

Key Support Breaks and Investor Flight: Pepe’s price recently dropped below the crucial support level of $0.000011, signaling bearish sentiment in the market. Data from Nansen reveals that the number of smart money investors holding Pepe has dwindled from 91 in February of last year to just 68 now. This shift is reflected in the reduced amount of Pepe tokens held by these investors, which has decreased from 12.32 trillion to 9.52 trillion. The decline in investor confidence in Pepe mirrors a broader trend seen in other Ethereum-based meme coins such as Shiba Inu, Floki, and Dogelon Mars, all of which have seen major drops as focus shifts toward Solana-based meme coins like Fartcoin, Official Trump, and Dogwifhat.

Futures Market Sentiment Weakens: As the Pepe crash continues, the futures open interest in the coin has sharply fallen from $556 million to $282 million, highlighting a reduction in market demand for long positions and a bearish outlook from traders.

Technical Indicators Signal Further Downside: On the technical front, Pepe is nearing the formation of a death cross, which occurs when the 50-day Weighted Moving Average (WMA) crosses below the 200-day WMA. This is typically a strong bearish signal, indicating that the coin is struggling to find buyers. Pepe’s price has also broken below the lower boundary of its descending channel, a further indication of bearish pressure. Additionally, the Average Directional Index (ADX) has risen to 27, suggesting that the downtrend is gaining momentum. The Relative Strength Index (RSI) is also nearing oversold conditions, which could indicate further downward movement.

Potential for Further Decline: Looking ahead, the next potential support level for Pepe is around $0.0000059, a significant drop that would represent a 45% decline from its current level. If this level is reached, it would mark a new low for the coin, reminiscent of prices seen in August 2024.

Possible Rebound from Falling Wedge: Despite the bearish outlook, there is a potential silver lining for Pepe. The coin is forming a falling wedge pattern, which often signals a future rebound if the price breaks above the upper trendline of the wedge. As long as Pepe remains inside the two descending trendlines of this pattern, there may be room for a potential recovery in the longer term.

In conclusion, while Pepe faces significant downward pressure and the threat of a death cross and more price declines, the falling wedge pattern offers a glimmer of hope for a rebound, depending on how the coin behaves in the coming days. However, with investor sentiment continuing to weaken and a growing shift towards other meme coins, Pepe’s short-term outlook remains precarious.