The major collapse of Pepe Coin draws near. Smart money wallets have started selling off their assets while analysts predict a 90% market decline because of rising negative market indicators.
Smart Money Investors Sell Pepe Coin Holdings
Pepe Coin price has dropped sharply in recent months. It is down by more than 70% from its 2024 peak. Data shows that experienced traders are reducing their exposure to the meme coin.
According to Nansen’s blockchain analytics platform, there were 17 smart money wallets holding Pepe on May 7. The smart money wallet count declined from over 40 in June 2023 to 32 in November 2023. As of May the total Pepe tokens owned by these investors reached 2.79 trillion but decreased from June’s 4.24 trillion tokens. Top wallets show continuous exits from their Pepe token positions.
Smart investors buy before market gains and sell at peak points. The departure of smart investors has created industry-wide apprehension about potential price deterioration. Etherscan data reveals that smart wallets have initiated significant transactions toward exchanges to initiate sales.
Ethereum Weakness Could Accelerate Pepe Coin Price Crash
Pepe is the second-largest meme coin on Ethereum after Shiba Inu. The coin’s fortunes have closely followed Ethereum’s performance. Since April 2024, the Ethereum price has struggled to break above the $2,000 resistance. It remains below $1,900 at the time of writing.
Ethereum market continues to decline could boost selling pressure for Pepe cryptocurrency. Time and again, historical records demonstrate that meme coins struggle to maintain their value throughout periods when Ethereum experiences negative price movement. All market performance metrics of Pepe rely on Ethereum blockchain network utilization statistics because it operates on the Ethereum blockchain.
Pepe Investors Rotate to Solana Meme Coins
The emergence of Solana meme coins serves as a second underlying factor behind investor cash movements. The growing activity at Solana appeals to retail and institutional investors to the same extent. The meme coin market has experienced significant growth since Dogwifhat, along with Bonk and Fartcoin, have shown double-digit asset appreciation recently.
Currency players are moving their financial support from Ethereum assets to crypto tokens built on the Solana network. Solana delivers trading performance improvements through its faster speeds combined with lower fees, which benefits execution speed. Traders choose Solana’s expanding meme coin space more than Ethereum’s higher prices.
Multiple wallets engaged with the Market intelligence firm Lookonchain operated between Pepe and Bonk and WIF during April. Market data shows investors choose emerging prospects beyond the Ethereum platform.
Chart Pattern Points to a Bearish Breakout
Pepe Coin’s chart price shows strong bearish signals. On the three-day chart, it has broken below the ascending channel formed since April 2023. It also created a rising wedge, which is often followed by a breakdown.
According to TradingView data, Pepe is trading below its 50-day moving average. This indicates a loss of momentum. A bearish flag has formed, and analysts see $0.0000009618 as the next support. That is nearly 90% below its current price of $0.00000813.
The price could crash toward that level if volume remains low and smart money continues to exit. Technical traders view wedge breakdowns as reliable bearish signals. If the $0.0000075 level fails to hold, a fast move lower may follow.
Resistance Levels to Watch
There is a strong resistance at $0.00001057. A move above this level would weaken the bearish setup. Volume-driven movement through this threshold might drive Pepe’s price up towards $0.000017. This price level functioned as the peak during May 2023.
The market currently stands in favor of sellers. High buying volume needs to return before the bearish structure remains in effect. Traders currently focus on monitoring important price levels along with exchange transactions, attempting to detect market direction changes
