Pepe Coin Faces Sharp Decline but Indicators Signal Possible August Rebound

Key Insights

Pepe Coin drops below the 200-day EMA after five-day losing streak, signaling a potential test of its long-term ascending trendline support.

Whale holdings increase 10% in a month to 8.63 trillion tokens, showing strong accumulation despite the ongoing market price decline.

Positive funding rates and consistent exchange outflows since late June indicate trader optimism and reduced selling pressure on Pepe Coin.

Pepe Coin continued its downtrend this week, extending losses that began on July 22 when the token hit a peak of $0.00001465. The decline has mirrored weakness in Bitcoin and several major altcoins.

The token has closed lower for five consecutive sessions, marking its longest losing streak in months. This move has pushed it beneath the 200-day Exponential Moving Average, a key indicator for long-term momentum. The Relative Strength Index has slipped from an overbought level of 70 in late July to 37, approaching oversold conditions.

Potential Support at Ascending Trendline

Technical patterns suggest Pepe Coin may soon retest an ascending trendline that has held since March 2023. In previous instances, price rebounds from this level have been significant, including a 71%t rise in June last year and a 166% rally in April this year. A recovery from the trendline could set the first target at the July high, representing a 37% upside, with further potential toward this year’s peak of $0.000016.

Source: TradingView

On-chain data indicates that large holders have been increasing their positions. Whale holdings have risen by 10% in the past month to 8.63 trillion tokens. This accumulation trend has diverged from the declining price, suggesting confidence among major investors.

Positive Funding Rates Support Bullish Sentiment

Futures market data shows that Pepe Coin’s funding rate has remained in positive territory since July 29. A positive rate indicates that traders expect higher prices ahead, reflecting a bullish stance in derivatives markets.

Data from late June reveals consistent outflows of Pepe tokens from exchanges. This trend often signals that investors are moving holdings into private wallets, reducing the immediate supply available for trading.

If Pepe Coin holds the ascending trendline, historical price behavior suggests a strong rebound is possible. A breakdown below this level, however, could shift sentiment toward the year-to-date low of $0.0000053, representing a steep decline from current prices.

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