Pepe Coin price has crashed by 75% from its highest point this year, and its risky chart pattern points to a prolonged crash that could push it to its lowest point since February last year.
- Pepe Coin price has formed a giant head-and-shoulders pattern on the daily chart.
- This pattern points to more downside in the coming months.
- The token has also formed a death cross pattern on the daily chart.
Pepe (PEPE), the popular memecoin, was trading at $0.00000713 today, Oct. 14, with 24-hour volume at $865 million.
Pepe Coin price has formed risky patterns
The daily time frame chart shows that the Pepe price has been forming a risky pattern since April last year. It has formed a head-and-shoulders pattern, which is made up of a head, two shoulders, and a neckline.
Its head represents the all-time high of $0.000028, while the right and left shoulders were at $0.00001638. These shoulders were the highest points in March last year and on May 23.
The neckline was at $0.000005, the lowest swing in August last year and on March 12. The price target in an H&S is estimated by measuring the distance between the head and the neckline, which, in this case, is about 80%.
Measuring the same distance from the neckline brings the target price to $0.0000105, which is about 85% below the current level. This target is its lowest level since February last year. Also, it has formed a death cross pattern as the 50-day and 200-day moving averages crossed.
The bearish Pepe Coin price outlook will become invalid if it jumps above the shoulder section at $0.00001638.
Whales and smart money investors have dumped Pepe
The bearish Pepe price forecast likely explains why whales and smart money investors have continued selling their coins. Smart money investors now hold 1.67 trillion tokens, down by 47% in the last 30 days.
Similarly, whales have dumped their tokens by over 22% in the last 30 days to 4.9 trillion. Public-figure investors have also scaled back their holdings by 16% to 92.54 billion tokens. These investors typically sell their assets when they anticipate them to plunge.
Pepe Coin price has also plunged as the correlation between Ethereum (ETH) and its memecoins has waned. While Ethereum recently jumped to a record high, top memes on the ecosystem like Shiba Inu, Baby Doge Coin, and Floki have all plunged.
