- Pepe Coin (PEPE) faces a potential 25% crash after forming a double top near $0.000015 and experiencing a 257% spike in whale transactions.
- Despite strong retail optimism, technical signals and whale behavior suggest a bearish outlook for the meme coin.
Pepe Coin (PEPE) is making waves again—but not necessarily in the way investors hoped. After a bullish surge that doubled its price in just six days, the meme coin now shows signs of exhaustion. A potential double top pattern has emerged near the critical resistance at $0.000015, followed by a 7.42% dip. This bearish signal is reinforced by a startling 257% spike in whale transactions, suggesting that large holders may be cashing out.
According to IntoTheBlock data, whale transactions exceeding $100,000 surged to 720 on May 12—coinciding with PEPE’s recent price peak. Historically, similar spikes have aligned with market tops, often preceding steep declines. Should the double top pattern confirm with a break below the $0.00001274 neckline, PEPE could tumble 25% to the projected target of $0.00001063.
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Market sentiment, however, remains unusually bullish. Data from Binance shows 72% of traders holding long positions on PEPE, with Open Interest (OI) hovering near $583 million. The Long/Short ratio sits at 2.57, pointing to excessive optimism that could trigger long liquidations if the bearish setup plays out.
Bitcoin’s struggle to hold above $104,000 adds to the bearish outlook. A dip below the $102,000 support could drag the broader crypto market with it, especially volatile altcoins like PEPE. If BTC falls into the $93K-$102K consolidation zone, meme coins may suffer disproportionately.
Technical indicators mirror this caution. The RSI is showing bearish divergence, retreating from overbought territory, while the MACD has flipped bearish after a negative crossover.
Still, there’s a silver lining. If PEPE breaks above $0.000015, it would invalidate the double top and open the door to a rally toward $0.00001792, the next major resistance based on Fibonacci levels.
In short, while retail traders remain bullish, whale behavior and technical patterns point to caution. Unless PEPE breaks above resistance, a significant correction could be imminent.
