Pepe (PEPE) Price Has Crashed by 65% from Its All-Time High and Is at Risk of More Downside as Smart Money Investors Flee and a Death Cross Nears

Pepe (PEPE) dropped below the key support level at $0.000011 and is hovering near its lowest level since Nov. 7 last year.

Pepe coin price has crashed by 65% from its all-time high and is at risk of more downside as smart money investors flee and a death cross nears.

Pepe (PEPE) price dropped below the key support level at $0.000011 on Monday and is now hovering near its lowest level since Nov. 7 last year. Pepe coin price is also down about 98% from its all-time high price of $0.00033.

After rising above the $0.0000086 level in August last year, Pepe price has been forming lower highs and lower lows within a descending channel on the daily chart.

Pepe price now trades close to the lower boundary of the channel and is at risk of dropping to new yearly lows.

Smart money investors continue to dump Pepe coin

Nansen data shows that the number of smart money investors holding Pepe has dropped to 68, down from last year’s high of 91.

These investors are known for their large holdings of tokens and their ability to influence the market.

As they continue to dump Pepe coin, it is likely to face more selling pressure.

Moreover, the total number of tokens held by these smart money investors has also dropped from 12.32 trillion in February last year to 9.52 trillion.

This indicates that these investors are not only reducing their positions in Pepe but are also selling the tokens they hold.

Pepe performance aligns with other Ethereum meme coins

Pepe's performance aligns with that of other Ethereum (ETH) meme coins like Shiba Inu (SHIB), Floki (FLOKI), and Dogelon Mars (ELON).

These tokens have plunged as investors shift their attention to Solana meme coins like Fartcoin (FC), Official Trump (TRUMP), and Dogwifhat (DWF).

Data from Coinglass also shows that Pepe futures open interest dropped to $282 million on Tuesday, a sign of waning demand in the futures market.

Open interest reached a high of $556 million year-to-date, but Pepe's ongoing crash has led to a big drop in futures activity.

Pepe coin price about to form a death cross

Technicals suggest that the Pepe coin price is about to form a death cross pattern as the spread of the 50-day and 200-day Weighted Moving Average (WMA) narrows.

This pattern is one of the most bearish in the market, as it shows that an asset is not finding bids.

If the spread continues to narrow and the 50-day WMA crosses below the 200-day WMA, it will be a bearish sign for Pepe coin.

Moreover, Pepe has moved below the lower side of the descending channel, which is another risky sign.

The Average Directional Index (ADX) has also risen to 27, indicating that the downtrend is strong.

Finally, the Relative Strength Index (RSI) is nearing the oversold level, which suggests that further selling pressure may be limited.

Therefore, the coin will likely continue falling, with the next reference point to watch being at $0.0000059, its lowest level in August last year.

Such a move would point to a 45% crash below the current level.

On the positive side, Pepe is forming a falling wedge pattern, which points to a rebound in the future.

The wedge pattern will remain intact as long as it is inside of the two descending trendlines.