Pepe Coin Drops 3.19% After 84% Surge, Whale Transactions Spike 257%

Pepe Coin (PEPE) has experienced a tumultuous week, with its price currently trading at $0.00001399 following a 3.19% decline. This drop comes after an impressive 84% surge over three days, which pushed its market capitalization to $5.9 billion. The recent price movements have formed what analysts describe as a double top pattern near the $0.000015 resistance level.

On May 12, on-chain data revealed a 257% increase in whale transactions, coinciding with PEPE’s peak price. Transactions valued at over $100,000 reached 720 on that day, a significant spike that often signals a potential market top formation. Historical data indicates that transaction counts crossing the 800 mark have typically preceded price corrections for PEPE.

PEPE’s price jump was remarkable, climbing 100% from $0.0000075 to $0.000015 between May 6 and May 12. However, the token has struggled to break through the $0.000015 psychological barrier. The current price behavior has resulted in a sideways shift with $0.00001274 acting as a baseline support level. The consolidation has created two price peaks, which technical analysts interpret as a double top reversal pattern after a 7.42% drop.

Despite the bearish signals, PEPE remains the third-largest memecoin by market capitalization, trailing only Dogecoin (DOGE) and Shiba Inu (SHIB). This ranking showcases its strong standing in the increasingly popular memecoin sector. The token’s recent performance is part of a broader memecoin rally, with the overall memecoin market capitalization jumping from $55 billion at the beginning of May to $72.2 billion just 12 days later, representing a 45% increase.

PEPE’s market cap has shown even more impressive growth, surging over 120% from around $2.4 billion in March to its current level. This growth has been partly fueled by Ethereum’s rebound, which climbed nearly 60% from a low of $1,380 to above $2,500. The connection to Ethereum is not surprising, as PEPE is an ERC-20 token that tends to benefit from bullish momentum in the Ethereum ecosystem. Other Ethereum-based tokens have seen similar gains during this period.

While the price is currently correcting, on-chain metrics show PEPE’s holder count has climbed to over 432,000, suggesting continued retail interest and support for the token. This growing user base could provide price stability during the current correction phase. Technical analysis of PEPE’s price chart reveals several warning signs. To complete the bearish double top pattern, PEPE price must drop to the $0.00001274 neckline and break the short-term support trendline at that level.

A four-hour candlestick close below this neckline would confirm the breakdown. In such a scenario, the pattern projects a 25% crash to $0.00001063, calculated by adding the double top’s height to the neckline. The Relative Strength Index (RSI) shows bearish divergence as it declines from the overbought zone to the halfway line during PEPE’s uptrend. The MACD and signal lines are falling after a negative crossover, suggesting growing bearish momentum.

However, trader sentiment remains overwhelmingly positive. Despite the short-term pause in PEPE’s rally, futures markets show heightened optimism for an uptrend continuation. The Open Interest (OI) maintains a near record-high level at $583 million, indicating strong trader engagement. On Binance, 72% of PEPE traders hold long positions, pushing the Long/Short ratio to 2.57. This extreme bullish tilt could be dangerous if the price continues to correct, potentially leading to a cascade of liquidations.

One trader on Hyperliquid opened a $2.3 million long position on PEPE with 3x leverage, showing substantial confidence in future price increases. Meanwhile, crypto analyst CryptoKaleo suggested that the memecoin could consolidate before potentially surging toward a market cap between $10 billion and $20 billion. If PEPE breaks past the immediate resistance and closes a daily candle above $0.0000159, it could gain another 31%, potentially reaching the next resistance around $0.00001946 to $0.00002000.