Pepe Coin price could be on the verge of a big crash this year after forming a risky pattern, and as data shows that smart money investors have sold their holdings. This crash could also happen as Ethereum price fails to jump above the resistance at $2,000.
Pepe Coin Price is At Risk as Smart Money Investors Sell
Pepe Coin price has dropped by 70% from its highest point in 2024, mirroring the performance of other meme coins. This crash has coincided with increase token sales by smart money investors, who are seen as being more experienced than retail investors. In most cases, these investors sell coins at their peak and start to accumulate before the retail buyers do.
Nansen tracked just 17 smart money holders on May 7, down from 32 in November last year. These holders have continued to exit their positions as the price dropped. The remaining ones now hold 2.79 trillion Pepe tokens, down from 3.7 trillion in November last year and 4.24 trillion in June.
One possible reason for this is that Pepe is the second biggest meme coin on Ethereum after Shiba Inu. Investors have largely sold off these coins as the Ethereum price has plunged from over $4,000 last year to $1,800 today. As such, more ETH weakness may trigger more Pepe sell-off in the coming months.
Another reason is that these investors sold their Pepe Coins and rotated to those in the Solana ecosystem. Just recently, top Solana meme coins like Fartcoin, Dogwifhat, and Bonk surged by double digits, attracting more smart money investors.
Pepe Price Prediction Points to a Crash This Year
The three-day chart shows that the value of Pepe peaked at $0.00002825 in December last year, pushing its market cap to over $10 billion for the first time ever. It has plunged by over 70% from its highest level in December, costing investors billions of dollars.
Pepe price has moved below the lower side of the ascending channel that connects the lowest point since April last year. Most recently, the Pepe Coin price has formed a rising wedge chart pattern, which often leads to a bearish breakout.
This wedge pattern formed after a big crash, meaning that it has formed a bearish flag. It has also dropped below the 50-day moving average. Therefore, the most likely Pepe forecast is where it stages a strong bearish breakout, potentially to $0.0000009618, down by almost 90% from the current level.
The bearish outlook will become invalid if the Pepe price rises above the important resistance level at $0.00001057. A move above that level will see it soar to the next point at $0.000017, the highest swing in May last year.
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