The recent Pepe coin price rebound could be nearing its end as some top holders start exiting and as active addresses fall. It could also come under pressure after forming a popular bearish chart pattern.
Pepe Coin Price Is At Risk As Top Holders Scale Back
Pepe, the third biggest meme coin, has recovered by over 40% from its lowest level in December as investors bought the dip.
Now, however, there are signs that some big holders have started to sell the coin, which could lead to more weakness in the near term. Santiment data shows that the supply held by top addresses as a percentage of total supply has dropped to 39.78 billion, down from over 45 billion tokens a few weeks ago.
Pepe Large Holders Are Selling
More data by IntoTheBlock shows that the number of addresses has continued falling in the past few weeks. New addresses have fallen by 13.21% in the last seven days, while active addresses have dropped by 3.90%. This decline is a sign that many users anticipate that the token price will continue falling.
Pepe Active Addresses
Meanwhile, smart money investors have also started to sell the Pepe coin as its price dropped from its all-time high. There are now just 90 smart money holders of the coin, down from near 110 a few weeks ago.
Pepe Coin Smart Money
Pepe Price Chart Points To a Big Crash Soon
The 4H chart shows that the Pepe price peaked at $0.00002190 last week, where it formed a double-top chart pattern. This was an important price since it was along the 50% Fibonacci Retracement level, which provides crucial resistance.
Now, the Pepe coin price has formed a rising wedge chart pattern, which results into a bearish breakout. The upper trendline links the highest swings since December 24, while the lower side connects the lowest levels since December 21. These two support and resistance levels are now nearing their convergence, which is when a bearish breakout usually happens.
Pepe Coin Price Chart
Pepe Forecast Reveals Key Targets
Based on this technical analysis, we can estimate that the value of Pepe will soon have a bearish breakout. This view will be confirmed if it drops below the lower side of the wedge and the 50-period moving average at $0.00002020. Such a move will put Pepe at risk of falling to the December low of $0.00001433, which is about 30% below the current level.
On the other hand, the bearish Pepe prediction will be invalidated if it rises above the key resistance at $0.00002190, the highest swing this month. That rebound will push it to the psychological point at $0.00002535, which is 22% above the current level.
The post Pepe Coin Price Set to Crash 30% As Top Holders Sell PEPE appeared first on CoinGape.
