66% Drop? Head-and Shoulders Pattern Hints at Another Painful Correction for PEPE

Pepe (PEPE) has broken below a key neckline support, completing a textbook head-and-shoulders pattern. The move suggests further downside risk.

Meanwhile, the price is around $0.00000558 at press time, with a weekly drop of over 17%.

Pattern Structure and Target Projections

The chart posted by Ali Martinez shows a well-defined head and shoulders formation. The neckline support broke at approximately $0.0000065, triggering a bearish move. This structure is typically known for reversing uptrends when confirmed by a neckline break.

The projected target from this breakdown points toward $0.00000185. This is based on the measured move from the top of the head to the neckline and confirmed with Fibonacci levels. The chart shows possible support at $0.00000490 and $0.00000333 before reaching lower targets.

Price and Volume Trends

PEPE’s price continues to trade below its 9-day EMA. This keeps momentum tilted to the downside. The recent decline in volume adds to this view. Daily trading volume is now near $310 million, a drop of more than 50% compared to the previous day.

Source: TradingView

On the RSI, the reading sits at 30. This level is near oversold territory but has not yet triggered a reversal. Unless volume returns or buyers step in, the trend may remain weak in the near term.

Funding Rates Turning Positive

Data from Coinalyze shows the aggregated funding rate is now +0.0100. The predicted rate is +0.0056. Both metrics have flipped from negative to positive, suggesting some traders are positioning for a bounce. These figures often indicate a shift in sentiment, especially after a strong drop.

Source: Coinalyze

However, the price remains below resistance. Until levels above $0.0000065 are reclaimed, the pattern’s structure remains in play.

The current structure suggests sellers remain in control. Until the asset builds above key resistance, the next move toward the $0.00000185 target remains on the table.

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