Pepe Coin price remains in a bear market this year. It has dropped by ~82% from its highest point this year, lagging behind other top coins like Ethereum and Bitcoin. Still, technicals suggest that the Pepe price may plunge by another 80% as its exchange inflows are soaring.
Pepe Coin Price Technicals Show that it is at Risk of More Downside
The daily timeframe chart reveals that the Pepe Coin price has been in a deep bear market this year. It has continued to form a series of lower lows in a sign that bears are always prevailing whenever it attempts to rebound.
Pepe value formed a death cross in August and has remained below the 50-day and 200-day Exponential Moving Averages (EMA) since then. A death cross is one of the most common bearish patterns in technical analysis. It has also dropped below the Ichimoku cloud indicator, a sign that bears remain in control.
A closer look shows that at least two risky patterns have formed. The most recent was the inverse cup-and-handle pattern. This pattern is made up of a horizontal line and a rounded top and is a common continuation sign.
It has also been forming the risky head-and-shoulders pattern. This pattern started forming in March last year when it jumped to a high of $0.00001636. It then formed the head section at $0.00002820.
Pepe Coin price retested the resistance at $0.00001636 in May, which became the right shoulder. Most recently, it has dropped below this pattern’s neckline at $0.0000051.
Therefore, all these patterns mean that the token will continue falling, with the next target being at $0.00000090, down by 80% from the current level.
Pepe Coin Price ChartOn the other hand, a move above the resistance at $0.000010 will invalidate the bearish Pepe price forecast.
6.5 Trillion Pepe Tokens Have Entered Exchanges
The worsening technicals explain why investors are capitulating, with whales, smart money, and public figures dumping it. As the chart below shows, exchange inflows have risen in the past month.
There are now 258.19 trillion Pepe tokens in exchanges, up from the November low of 251.78 trillion. This means that investors have sold tokens worth over $30 million in the past 30 days, a trend that may continue as the crash intensifies.
Pepe Coin Exchange BalancesSome of the investors selling Pepe Coins are public figures who have reduced their holdings from 92.9 billion in November to the current 86.32 billion tokens. Therefore, this selling is a sign that these investors are capitulating.
Pepe’s downtrend mirrors that of other meme coins. For example, the Shiba Inu price has tumbled by over 70% this year and is hovering near its all-time low. Other meme coins like Bonk and Dogwihat have also continued falling.
Source: https://coingape.com/markets/pepe-coin-price-risks-80-crash-as-alarming-pattern-forms-and-6-5t-inflows/
