Pepecoin\u2019s price has dropped by more than 70% three weeks after establishing its record high<\/a> of $0.00000449. And the memecoin<\/a> could fall even more in the coming days, according to a mix of technical and fundamental indicators.<\/p>\n From a technical standpoint, the price of Pepecoin (PEPE) could drop sharply from its current levels.\u00a0At the core of this bearish outlook lies the classic head-and-shoulders (H&S) pattern<\/a>.<\/p>\n Analysts who use technical analysis view the H&S pattern as a bearish reversal indicator for the unversed. It forms when the price forms three peaks atop a common neckline support; the middle peak, called the \u201chead,” is higher than the other two, called the \u201cleft shoulder\u201d and \u201cright shoulder.”<\/p>\n The H&S pattern resolves after the price breaks below its neckline. Meanwhile, as a rule of technical analysis, traders measure the pattern\u2019s downside target by adding the maximum distance between the head and neckline to the breakdown point.<\/p>\n On May 22, PEPE broke below its H&S neckline, near $0.00000156. That puts its downside target near $0.00000041 in June, down around 70% from current price levels.<\/p>\n Meanwhile, the H&S breakdown could exhaust midway as PEPE tests $0.00000082 for a rebound in June. This level, down about 30% from current price levels, served as support in early May; it further coincides with PEPE\u2019s 0.786 Fibonacci line.<\/p>\n On the other hand, the breakdown scenario will risk invalidation if the PEPE price reclaims the H&S neckline as support.<\/p>\n Despite its recent losses, PEPE still trades 4,000% higher when measured from its exchange debut price of $0.00000044. As a result, more price declines could prompt existing PEPE holders<\/a> to lock in their profits, thus exacerbating the bearish bias.<\/p>\n Related:\u00a0How to benefit from Bitcoin volatility with market analysis and trading bots<\/a><\/em><\/strong><\/p>\n The concerns arise if one tracks PEPE\u2019s\u00a0top 15 high-yielding addresses<\/a>. Almost all the entities have reduced their PEPE holdings in recent weeks, with some even dumping their entire stash to secure early profits.<\/p>\n At the same time, the number of PEPE\u2019s daily holders has flatlined since May 5, suggesting an absence of unique users entering the network. <\/p>\n That has translated into lower trading volumes across crypto exchanges, serving another bearish cue to existing tokenholders.<\/p>\n PEPE could duck the bearish outlook in the event of a broader crypto uptrend, led by potential rallies in the Bitcoin (BTC<\/a>) and Ether (ETH<\/a>) markets.\u00a0<\/p>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\nPEPE charts flash a classic bearish reversal pattern<\/h2>\n
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Will existing PEPE holders dump?<\/h2>\n
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