Pepe coin (PEPE) has experienced significant price declines, hitting lows not seen since early May 2023. The token’s price dropped to $0.00001096, down approximately 32% from its peak this year. Concurrently, the circulating supply of Pepe coins on exchanges has crashed to around 105.33 trillion, the lowest level since 2022 and a sharp drop from the previous year's 215 trillion. This diminished supply suggests that holders are currently unwilling to sell.
On-chain analytics indicate that whale investors have increased their Pepe holdings by 2.74% in May, now controlling about 9.71 trillion coins. Additionally, smart money investors, known for successful trading records, have notably accumulated Pepe, raising their holdings by 145% month-over-month to 625 billion tokens. A rising positive funding rate since May 8 signals market optimism about Pepe’s future price despite recent declines.
However, technical analysis points to bearish momentum. Pepe’s price recently fell below the lower boundary of a bullish flag pattern, with indicators such as the Relative Strength Index (RSI) and MACD trending downward. There is potential for further price drops to the 78.6% Fibonacci retracement level at $0.00001057 before a possible bounce to the 50% retracement near $0.000017.
Recent whale activity includes a major sell-off of 502.5 billion PEPE coins worth $6.47 million executed on Binance, resulting in significant profits for the whale. This sell-off coincided with a bearish breakdown from an ascending triangle pattern, driving market sentiment negative. With volume dropping by 15%, investor participation appears cautious. Liquidation risks exist at $0.00001259 on the downside and $0.00001351 on the upside, while overall whale transaction volumes have increased by 4.09%.
The short-term outlook suggests downward pressure could continue, with a potential 15% price decline to around $0.0000111 according to technical forecasts. Nevertheless, the increased accumulation by whales and smart investors may position Pepe for a rebound over a longer timeframe.