Pepe Coin Price Action Lines Up Bearish Cues, Death Cross Risks a Major Price Drop

PEPE crypto token's recent uptrend saw the token rise nearly 14% to a daily high near $0.00000756 before correcting mildly.

Pepe coin price has lined up some major bearish cues against itself, which could hurt the token’s price action in the coming days. While PEPE prices have been on an uptrend since Sept. 7, the bearish tokens will soon overtake the memecoin’s price action.

PEPE Coin’s Death Cross Risks A Major Price Drop

PEPE crypto token’s recent uptrend saw the token rise nearly 14% to a daily high near $0.00000756 before correcting mildly. However, the uptrend failed to overcome the 20-day EMA (red wave) trendline, suggesting that the bears defend the dynamic resistance.

Moreover, the token’s 50-day EMA (purple wave) and 200-day EMA (green wave) are close to forming a bearish technical pattern called the death cross. Notably, the PEPE coin price has not had very good luck with the pattern.

The last time the token formed the setup was in Feb. 2024, and the PEPE price dropped nearly 22% within the next week. If a similar result were to follow this time around, the PEPE USDT pair price could test the support levels near $0.0000068 and $0.0000059.

On the other hand, an uptrend from here would see the memecoin’s price face the resistance levels near $0.0000086 and $0.00001 before retreating. Notably, the RSI for PEPE coin remained neutral, with a score of 46.79 on the daily charts.

Whale Activity And Technical Setup Rile Up The Bearish Pressure

The largest whale cohort, holding over 1 billion PEPE tokens, has remained flat for an extended period, as indicated by the red line in the chart. This stagnation is worrying since whale wallets typically influence the market considerably.

The lack of accumulation or distribution from the largest holders suggests uncertainty or reluctance to engage further with PEPE at current price levels. Notably, this static behavior is a bearish cue, especially when combined with other indicators.

Interestingly, while these whale wallets aren’t participating, smaller cohorts (1 million to 100 million PEPE holders) are steadily accumulating, further heightening the bearish sentiment.

Typically, smaller investors react more to short-term price movements, while whales usually indicate a broader trend. So, when whales hold steady and don’t accumulate, they may be waiting for better opportunities, potentially anticipating a price drop.

Furthermore, the PEPE USDT pair’s price has formed a bearish technical setup called the ‘descending triangle.’ Analysts recognize the descending triangle as a bearish continuation pattern.

The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support. The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.

In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Notably, Pepe coin’s price did break out of this descending triangle in the week beginning Sept. 2, only for the bulls to push it back within the pattern.

However, if the bearish setup is confirmed, the Pepe Coin’s price price could plummet by over 65%, reaching a target near $0.00000261.

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