Pepe on the Edge: Chart Warns of an 85% Crash – Is This the Biggest Memecoin Collapse of the Year?

The popular meme token Pepe (PEPE) is facing one of the most alarming technical setups in its history. After plunging more than 75% from its all-time high, a dangerous pattern has formed on the chart — one that suggests the worst may still be ahead, with a potential 85% drop looming.

Classic Bearish Setup — The Head and Shoulders Pattern Technical analysis of Pepe’s daily chart reveals a classic bearish structure — the Head and Shoulders formation, often signaling a deep correction after a failed bullish run.

This pattern forms when momentum fades and the market transitions into a longer-term downtrend. Key chart levels: Head: All-time high at $0.000028Left shoulder: $0.00001638 (March 2024)Right shoulder: $0.00001638 (May 2024)Neckline: $0.000005 (August 2024 and March 2025) If confirmed, the projected breakdown from this formation would send PEPE toward $0.00000105, representing a potential 85% decline — the lowest level since February last year.

“Death Cross” Confirms the Downtrend Adding to the bearish outlook, Pepe has now printed a “Death Cross” — when the 50-day moving average crosses below the 200-day moving average, historically signaling a long-term downturn.

Such a pattern often precedes extended declines as market momentum fades. The bearish scenario would be invalidated only if PEPE breaks above $0.00001638, signaling renewed bullish momentum and a possible reversal of the current structure.

Whales Are Dumping — Smart Money Is Leaving On-chain data shows that large holders and smart-money investors are rapidly exiting their positions.

In the last 30 days alone, holdings among these key groups have fallen sharply: 🔹 Smart-money wallets cut holdings by 47% to 1.67 trillion PEPE

🔹 Whales offloaded 22% of their positions, now holding 4.9 trillion tokens

🔹 Publicly tracked investor wallets reduced exposure by 16% to 92.54 billion tokens This mass exodus indicates that major players are expecting further downside, rather than a quick rebound.

Weak Correlation with Ethereum Adds Pressure Another red flag for Pepe is its fading correlation with Ethereum (ETH).

While Ethereum recently surged to a new record high, top memecoins like Shiba Inu, Floki, and Baby Doge have all struggled — signaling that investors are moving away from high-risk meme assets toward more stable cryptocurrencies.

Bottom Line: Pepe Stands at a Crossroads Pepe Coin is at a critical inflection point.

A combination of bearish technical indicators, mass whale selling, and weakening market correlations points to sustained downside pressure. If the price fails to hold above $0.000005, an accelerated crash could follow — potentially pushing PEPE to levels not seen in over a year. For now, one thing is clear: the bulls are retreating, and the bears are taking control.

#PEPE‏ , #pepecoin🐸 , #memecoin , #bearish , #CryptoPredictions

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“