Key Insights
- •Pepe Coin price jumped 14%, but big buyers did not support the move.
- •Hidden bearish signals show the downtrend may still continue soon.
- •Pepe price must stay above key levels or risk a sharp pullback.
Pepe Coin price went up about 14% in the last 24 hours, marking one of the stronger price jumps among memecoins today. However, Pepe still looks weak overall. Despite today’s rally, which appeared across the whole altcoin space, PEPE is down about 28% this month and about 53% in the last three months. This indicates the current jump is happening within a larger downward trend.
Pepe Coin Price Rises, but Big Buyers Still Avoid It
Pepe price increased, but whales, which are very large wallets holding substantial amounts of tokens, did not participate in the buying. Spot data reveals that whales and the top 100 wallets did not add more PEPE Coin over the past 24 hours. Smart-money groups also remained quiet, a behavior that suggests low price-specific conviction when the market is pumping.
The only buying observed came from numerous small retail wallets, as indicated by exchange outflows. This suggests the price increase occurred without strong underlying support. While exchange outflows surged slightly, this could also be attributed to top PEPE Coin wallets selling into the strength of the rally. The derivatives market further indicates weakness.
In the last 24 hours, crypto whales reduced their long positions by 7.34%, suggesting they may not anticipate further price increases. Long positions are trades taken with the expectation that the price will rise. The top 100 traders also decreased their longs by almost 26%. When these significant market participants reduce their long positions during a price jump, it often signals a belief that the price could fall again. The only positive sign comes from smart money, who, despite remaining net short or bearish, have slightly shifted towards the long side.
Pepe Coin Price Shows a Warning From RSI and Key Levels
Between November 27 and December 2, the Pepe coin price formed a lower high, while the Relative Strength Index (RSI) simultaneously made a higher high. This pattern is known as a hidden bearish divergence, which often indicates that a downtrend may continue even after a short-term price rise. The RSI, which measures price momentum, suggests that buyers may not be strong enough to sustain higher prices.
For Pepe price to demonstrate basic strength, it needs to remain above $0.000005047. A significant trend change would only be confirmed if it breaks above $0.0000052, which is approximately 15% higher. Conversely, if the Pepe coin price falls and drops below $0.000005046, the next support level is located near $0.0000039. This level would negate the entire recent jump, resulting in a decline almost equal to the recent 14% gain, indicating a very close risk-reward ratio at present.
Volume and Analyst Views Still Do Not Support a Strong Rally
Some analysts on X suggest that Pepe coin might be forming a large head-and-shoulders breakdown pattern. However, confirmation of a bearish breakdown requires volume support. The volume needs to increase for a strong trend change to occur. Currently, the volume does not confirm any reversal. The head and shoulders pattern is typically a bearish reversal pattern that often leads to sharp corrections.
This price rally might have served to help PEPE form the right shoulder of the pattern, making it more clearly defined. This also aligns with the observation of a lower high made by the price, as discussed earlier. While the 14% rise appears positive at first glance, key market participants such as whales, top traders, and momentum indicators are not supporting this upward movement. Until these segments of the market show positive trends, the Pepe coin price rally remains weak and susceptible to a swift reversal.