Here’s Why Pepe Coin Could Be Left Behind During the Uptober Rally
Pepe Coin is entrenched in a notable bear market, with on-chain analytics and lackluster technical indicators pointing towards a possible downturn in the coming weeks or months.
Summary
- Pepe Coin might miss out on the ongoing Uptober rally.
- The token has formed a descending triangle pattern on the daily chart.
- Whale and institutional investors are steadily unloading the token.
As of Thursday, Oct. 2, Pepe Coin (PEPE) was valued at $0.000010, reflecting a 40% drop from its peak in May this year. Its market cap has shrunk to over $4.2 billion, down from a record high exceeding $10 billion.
Technical Indicators Forecast Further Declines for Pepe Coin
The daily chart shows that Pepe Coin reached $0.00001645 on May 23 amidst the crypto market surge.
Since that peak, the coin has shown a pattern of lower lows, with any recovery efforts met with substantial resistance.
A descending triangle pattern has emerged, featuring a descending trendline and horizontal support at $0.0000091. This support is consistent with a crucial support level identified by the Murrey Math Lines tool.
Such a pattern typically results in a significant bearish breakout, confirmed when the price falls below this support. If this occurs, the next key level to watch will be $0.00000759, representing its lowest point from May last year and indicative of an extreme oversold condition.
However, this pessimistic outlook for Pepe would be nullified if the price breaks above the descending trendline of the triangle. In that scenario, it could surge towards the psychological level of $0.000015.
On-Chain Data Shows Whale Investors Are Divesting Pepe Tokens
One factor preventing Pepe Coin from partaking in the Uptober rally is the ongoing selling by whale investors, reflecting a bearish outlook for its future price.
Data from Nansen indicates that whale holdings have decreased by 22% over the last 30 days. They currently hold 6.11 trillion tokens, a drop from 7.5 trillion this time last month. Historically, when whales sell, it is often regarded as a bearish indicator.
A similar pattern is evident among smart money investors and famous public figures. Smart money investors have reduced their holdings by 65% in the past month, bringing their total to 912 billion tokens, while notable public figures have also diminished their stakes by 65%.