Pepe Coin (PEPE) Price Prediction: Could Be on the Verge of a Big Crash This Year

Pepe Coin price could be on the verge of a big crash this year after forming a risky pattern, and as data shows that smart money investors have sold off their holdings. This crash could also happen as Ethereum price fails to jump above the resistance at $2,000.

Pepe Coin Price Is At Risk As Smart Money Investors Sell

Pepe Coin price has dropped by 70% from its highest point in 2024, continuing a trend that has seen meme coins struggle. This crash has seen more experienced investors, also known as smart money investors, sell off their coins and reduce their holdings. In most cases, these investors sell coins at their peak and start to accumulate units at a lower price than retail buyers.

Nansen tracked just 17 smart money wallets on May 7, down from 32 in November last year. These wallets have continued to exit their positions as the price dropped. The remaining ones now hold 2.79 trillion Pepe tokens, down from 3.7 trillion in November last year and 4.24 trillion in June.

One possible reason for this is that Pepe is the second biggest meme coin on Ethereum after Shiba Inu. Investors have largely sold off these coins as the ETH price has dropped from over $4,000 last year to $1,800 today. As such, more ETH weakness may trigger more Pepe sell-off in the coming months.

Another reason is that these investors sold their Pepe Coins and rotated to those in the Solana ecosystem. Just recently, top Solana meme coins like Fartcoin, Dogwifhat, and Bonk surged by double digits, attracting more smart money investors.

Pepe Price Prediction Points To A Crash This Year

The three-day chart shows that the value of Pepe peaked at $0.00002825 in December last year, pushing its market cap to over $10 billion for the first time ever. It has plunged by over 70% from its highest level in December, impacting investors who bought the token at a higher price.

Pepe price has moved below the lower side of the ascending channel that connects the lowest point since April last year. Most recently, the Pepe Coin price has formed a rising wedge chart pattern, which often leads to a bearish breakout. This wedge pattern formed after a big crash, meaning that it has formed a bearish flag. It has also dropped below the 50-day moving average. Therefore, the most likely Pepe forecast is where it stages a strong bearish breakout, potentially to $0.0000009618, down by almost 90% from the current level.

The bearish outlook will become invalid if the Pepe price rises above the important resistance level at $0.00001057. A move above that level will see it soar to the next point at $0.000017, the highest swing in May last year.

Frequently Asked Questions (FAQs)

1. Will the Pepe Coin price crash as smart money investors sell off their tokens?

2. Why are these smart money investors selling off their tokens?

3. What is the most likely pepe forecast?