Pepe Coin price has been in a steep downward trend this year, moving from a record high of $0.00002840 in December to $0.0000053.
Pepe Coin (PEPE), the second-largest Ethereum (ETH) token, has become a fallen angel, with its market cap falling from over $10 billion to $2.8 billion today.
Worse, the token has formed a risky chart pattern that could turn a $10,000 investment into $2,830 in the near term.
The daily chart shows that the Pepe token has formed a risky chart pattern that could push it down by 70% soon. It is forming a head-and-shoulders pattern, a typical bearish pattern.
This pattern’s head is at $0.000028, its highest level in December. The right and left shoulders are at $0.000017, while the neckline is at $0.0000064. It has now moved below the neckline, confirming the bearish outlook.
The Pepe Coin price also formed a death cross pattern on Aug. 28 as the 50-day moving average fell below the 200-day average. Like the head-and-shoulders, this is another highly bearish pattern.
The coin has moved below the Ichimoku Kinko Hyo cloud, while the Relative Strength Index has pointed downwards. These indicators point to more downside in the near term.
The price target in the H&S pattern is established by first measuring the distance between the head and the neckline. In this case, the distance between the two is about 77%.
Measuring the same length from the neckline gives a target price of $0.000001540. This target price is about 72% below the current level, meaning that a $10,000 investment will turn to $2,830.
The other reason why Pepe price may crash further is that there are signs that crypto investors are opting for majors like Bitcoin and Ethereum. BTC and ETH have fallen by a smaller percentage than meme coins and other altcoins.
Pepe’s demand has waned recently, with its open interest plunging to $198 million on Nov. 4, down from over $780 million in September.
Meanwhile, whale investors have dumped the coin, a sign that they expect it to fall further. They have reduced their holdings by 28% in the last 90 days to 4.48 trillion. Public figure investors have cut their holdings by 72% to 86 billion.
