Pepe coin experienced significant selling pressure over the weekend, plummeting to $0.00001096 and marking its lowest price point since May 9 amid broader cryptocurrency market turbulence. The meme token has declined 32% from its 2025 peak, reflecting the intense bearish sentiment that has gripped digital asset markets. Despite this sharp correction, several underlying metrics suggest that long-term holders maintain confidence in the token’s prospects, with many choosing to move their holdings off exchanges rather than capitulate to selling pressure.
The most compelling bullish indicator for Pepe emerges from supply dynamics, with exchange-held tokens crashing to just 105.33 trillion coins, representing the lowest level since 2022. This dramatic reduction from last year’s peak of 215 trillion tokens indicates that investors are withdrawing their holdings from trading platforms, typically signaling reduced selling intentions and potential accumulation behavior. Simultaneously, whale activity has intensified significantly, with large holders increasing their positions by 2.74% in recent weeks to control 9.71 trillion tokens, while sophisticated “smart money” investors have dramatically expanded their stakes by 145% month-over-month to 625 billion tokens.
Market sentiment indicators also provide mixed but potentially encouraging signals for Pepe’s future trajectory. The positive funding rate has been climbing steadily since May 8, suggesting that derivatives traders anticipate higher future prices despite current spot market weakness. This divergence between spot price action and futures market sentiment often precedes significant price reversals, as it indicates that professional traders are positioning for upward moves even while retail investors are selling.
From a technical analysis perspective, Pepe’s price action has broken below a bullish flag pattern and currently tests critical support levels around the 100-day Exponential Moving Average. The Relative Strength Index and MACD indicators both point toward continued downside momentum, with potential targets at the 78.6% Fibonacci retracement level near $0.00001057. However, this level could serve as a strong bounce point for bulls targeting a recovery toward the 50% retracement at $0.000017, especially if the current accumulation trends among whales and institutional investors continue to strengthen the token’s fundamental support base.
