Pepe Coin price crash could turn $10,000 into $2,830 soon

Pepe Coin has experienced a significant downward trend this year, dropping from its record high of $0.00002840 in December to $0.0000053. The token has become a fallen angel, with its market capitalization plummeting from over $10 billion to just $2.8 billion. This drastic decline has led to fears of a potential crash, with technical analysis indicating a possible 72% drop in value in the near term.

The daily chart reveals that the Pepe Coin price is forming a head-and-shoulders pattern, which is a classic bearish chart formation. The head of the pattern reached $0.000028 in December, while the shoulders are at $0.000017, and the neckline sits at $0.0000064. The coin has now moved below the neckline, confirming this bearish outlook.

Additionally, on August 28, the coin exhibited a death cross pattern, as the 50-day moving average fell below the 200-day average—another strongly bearish indicator. Furthermore, the coin has moved below the Ichimoku Kinko Hyo cloud, and the Relative Strength Index (RSI) is also pointing downward, signaling further potential losses.

Using the head-and-shoulders pattern, analysts calculate the price target by measuring the distance between the head and the neckline, which is approximately 77%. Projecting this distance downward from the neckline results in a target price of $0.000001540, representing a potential decline of 72% from current levels. At this target price, an investment of $10,000 would shrink to just $2,830.

Pepe Coin’s recent struggles are not limited to technical patterns; its fundamental metrics also indicate weakness. Data shows that investors are shifting toward major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which have experienced smaller percentage declines compared to meme coins and altcoins.

Demand for Pepe Coin has waned significantly, with open interest falling from over $780 million in September to just $198 million as of November 4. Furthermore, whale investors, who hold substantial amounts of the coin, have reduced their holdings by 28% in the past 90 days, bringing them to 4.48 trillion coins. Public figure investors have made even steeper reductions, cutting their holdings by 72% to 86 billion coins.

The combination of technical indicators, such as the head-and-shoulders and death cross patterns, and weakening fundamentals, such as declining demand and whale sell-offs, paint a grim picture for Pepe Coin. With a potential 72% price drop looming, the coin’s investors face significant risks, and it is increasingly clear that the appeal of meme coins like Pepe is waning in favor of more established assets like Bitcoin and Ethereum.