Pepe Coin continues to face pressure amid a broader weakening of meme coin markets. The token is currently in its second consecutive week of decline following recent highs.
Formation of Head-and-Shoulders Pattern
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.
Slowdown in Whale Accumulation
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.
Macroeconomic Pressure 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.
