- Pepe Coin forms a head-and-shoulders pattern, signaling a potential 90% decline.
- Whale accumulation momentum has slowed despite prior gains in holdings.
- Futures open interest and trading volumes have sharply declined this month.
Pepe Coin extended its downward trend on July 30 as broader meme coin markets continued to weaken. The token has now entered its second consecutive week in the red, following a steady decline from recent highs.
The weekly price chart shows a formed head-and-shoulders pattern, a classic bearish signal. The head peaked at $0.00002815, while both shoulders formed at around $0.00001700. The neckline is established at $0.000005678. This configuration suggests a sharp correction could follow if prices fall below the neckline. Based on standard technical projections, the estimated downside target could reach as low as $0.000001092. This would represent a drop of approximately 90% from current levels.
Whale Accumulation Slows as Investor Caution Grows
Recent on-chain data indicates a noticeable slowdown in whale activity. While overall whale holdings have grown by 10% over the past month, the pace has flattened in recent weeks. Accumulation activity, often seen as a market strength indicator, has remained mostly stagnant lately. This shift in behavior highlights growing investor caution amid price weakness.
Daily trading volumes for Pepe Coin fell 20% in the last 24 hours to $728 million. A concurrent decline in futures open interest to $663 million, down from over $1.09 billion earlier in July, reinforces the bearish sentiment. These figures reflect declining trader engagement and reduced speculative positioning.
Macroeconomic Pressure Weighs on Risk Assets
Investor sentiment across the crypto space remains under pressure as the US Federal Reserve is unlikely to cut interest rates in its upcoming meeting. Strong GDP growth and labor market data have prompted expectations of a prolonged higher-rate environment.
This broader backdrop has made risk assets like meme coins more vulnerable to selling pressure.
Despite the bearish outlook for Pepe Coin, a possible breakout in Bitcoin’s price could act as a catalyst for broader altcoin recovery. If Bitcoin gains momentum, correlated assets like Pepe may temporarily reverse course.
