Pepe Coin Faces Potential 80% Decline Amid Rising Exchange Inflows

Pepe Coin Faces Bear Market Challenges

The price of Pepe Coin has been in a persistent bear market this year, plummeting by approximately 82% from its peak. It has notably underperformed compared to major cryptocurrencies such as Ethereum and Bitcoin. Technical analysis indicates a further potential decline of 80% as exchange inflows surge.

Technical Indicators Highlight Further Downside Risks

The daily chart for Pepe Coin illustrates a consistent downward trend, characterized by lower lows, indicating that bearish sentiment dominates any recovery attempts. A death cross formed in August, with prices remaining below the 50-day and 200-day Exponential Moving Averages (EMA), a bearish signal in technical analysis. Furthermore, the price has fallen below the Ichimoku cloud, suggesting continued bearish control.

Two concerning patterns have emerged: an inverse cup-and-handle and a head-and-shoulders pattern. The latter began forming in March last year, reaching a peak of $0.00002820. Recently, the price dropped below the pattern's neckline at $0.0000051, suggesting further declines. These patterns imply a potential target of $0.00000090, representing an 80% decrease from current levels.

An upward move beyond the resistance at $0.000010 could negate this bearish outlook.

Significant Exchange Inflows: 6.5 Trillion Pepe Tokens

The deteriorating technical outlook has prompted investor capitulation, with significant sales from whales and public figures. Recent data shows exchange inflows have increased, with 258.19 trillion Pepe tokens now held in exchanges, up from 251.78 trillion in November. This influx represents over $30 million in tokens sold within the past month, a trend likely to persist as the sell-off continues.

Notably, public figures have reduced their holdings from 92.9 billion tokens in November to 86.32 billion, indicating a lack of confidence. Pepe Coin's downward trajectory is reflective of other meme coins, such as Shiba Inu, which has also seen a significant decline this year.