Bitcoin News Today: Pepe Coin Forming Bearish Pattern Amid 90% Downside Risk

Pepe Coin (PEPE) has experienced a sharp decline amid the formation of a classic head-and-shoulders bearish pattern on its weekly chart. The head peaked at $0.00002815, while the shoulders settled around $0.00001700, with the neckline established at $0.000005678. If the price falls below this level, technical analysts estimate a potential drop to as low as $0.000001092, representing a decline of approximately 90% from current levels [3]. The coin has now entered its second consecutive week in negative territory, with a steady descent from recent highs [1].

On-chain data also reflects a slowdown in whale activity, signaling growing caution among large investors. While whale holdings increased by 10% over the past month, the pace has slowed significantly in recent weeks. Accumulation has remained largely stagnant, suggesting that even holders who previously built positions are now adopting a more defensive stance [1]. Daily trading volumes for Pepe Coin fell 20% in the last 24 hours to $728 million, while futures open interest dropped to $663 million from over $1.09 billion in early July. These declining figures underscore a broader loss of speculative interest [1].

The bearish trend aligns with a wider selloff in the altcoin market, particularly affecting smaller-cap tokens. In the same 24-hour period, BONK dropped 12%, and Dogecoin (DOGE) fell by 4%. The CoinDesk Memecoin Index declined by more than 6%, reinforcing the idea that Pepe Coin is not acting in isolation but is part of a broader market correction [2]. This decline has raised questions about PEPE’s ability to reach the $1 cent price target that was previously discussed in price prediction reports [3].

While some short-term futures data suggested bullish momentum in late July, this optimism has been overshadowed by the broader macroeconomic environment. The U.S. Federal Reserve’s decision to maintain higher interest rates has increased pressure on risk assets, including meme coins. Strong GDP and labor market data have led to expectations of a prolonged tight monetary policy, making high-risk investments more vulnerable to sell-offs [2].

Despite the bearish signals, analysts have noted that a potential breakout in Bitcoin’s price could act as a catalyst for broader altcoin recovery. Should Bitcoin regain momentum, correlated assets like Pepe Coin may see a temporary reversal in sentiment. However, current trends in open interest and volume indicate a lack of conviction in this potential scenario [5].

The sell-off in Pepe Coin highlights the volatility and speculative nature of meme tokens, especially in times of macroeconomic uncertainty. As the market continues to test key levels, traders remain cautious, watching for signs of further breakdowns or possible reversals. While short-term futures show some bullish sentiment, the longer-term outlook appears more uncertain as momentum and open interest continue to decline [5].

Source:

[1] CoinMarketCap - [https://coinmarketcap.com/community/articles/688c3ce6ee685d00e4e356fa/](https://coinmarketcap.com/community/articles/688c3ce6ee685d00e4e356fa/)

[2] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-fomc-decision-triggers-50b-altcoin-selloff-bitcoin-eyes-130k-rally-2507/](https://www.ainvest.com/news/bitcoin-news-today-fomc-decision-triggers-50b-altcoin-selloff-bitcoin-eyes-130k-rally-2507/)

[3] CryptoWeekly - [https://cryptoweekly.co/news/pepe-price-prediction-can-it-hit-1-cent/](https://cryptoweekly.co/news/pepe-price-prediction-can-it-hit-1-cent/)

[5] Mitrade - [https://www.mitrade.com/insights/news/live-news/article-3-998623-20250731](https://www.mitrade.com/insights/news/live-news/article-3-998623-20250731)