Pepe Coin Faces Pressure as Whale Selling and Weak Demand Weigh on Price

Pepe Coin (PEPE), the third-largest meme cryptocurrency after Dogecoin and Shiba Inu, is struggling to find momentum as persistent selling and declining investor interest push prices lower.

The token fell to $0.000009205 this week, marking its lowest level since June 24 and extending a nearly 50% slide from its yearly high.

Whale and Smart-Money Investors Reduce Holdings

One of the clearest signals behind the decline is heavy distribution by large holders. Data shows that whales have reduced their PEPE holdings to 6.54 trillion tokens, down from 7.6 trillion earlier this year.

Similarly, wallets tagged as “smart money” investors have slashed their exposure from 2.6 trillion tokens in August to just 1.62 trillion today.

Such behavior is typically viewed as bearish, as both whales and seasoned investors often anticipate broader market moves before retail traders react. Their exit from PEPE suggests growing skepticism about the token’s near-term performance.

Open Interest and Trading Volume Continue to Shrink

Market activity in both derivatives and spot trading has also cooled. Futures open interest dropped sharply to $557 million this week, compared to $800 million at the beginning of September and more than $1 billion in July. Falling open interest signals that traders are pulling back from speculative bets on the token.

The spot market is showing similar weakness, with daily trading volumes steadily decreasing over the past several months. Lower volumes not only reflect diminished investor interest but also make the token more vulnerable to sharp moves during periods of heightened volatility.

Technical Analysis: Descending Triangle Adds Bearish Pressure

From a technical perspective, PEPE’s chart highlights a concerning setup. The token has been trending lower since its May peak of $0.00001667, recently hitting $0.0000091. This price coincides with a horizontal support level that has been tested multiple times since June, making it a key line for traders to watch.

The descending triangle pattern now visible on the daily chart points to the possibility of further downside. The structure connects a series of lower highs formed on May 22, July 22, and September 13, while horizontal support remains under pressure.

Adding to the bearish tone, PEPE is trading below both its 50-day and 100-day exponential moving averages. The Average Directional Index (ADX), which measures trend strength, has been rising, signaling that the ongoing downtrend may still have room to run.

Outlook: Risk of Deeper Losses

If the selling momentum continues, analysts warn that PEPE could fall toward its next major support near $0.0000059, a level last seen on April 6. A breakdown below this threshold would likely trigger additional panic selling, leaving the token exposed to further losses.

Still, some traders argue that such declines could provide an opportunity for long-term accumulation, especially if whales reenter the market at lower levels. Until then, Pepe Coin faces an uphill battle to regain investor confidence amid weakening demand and ongoing distribution from large holders.