PEPE Forms Head and Shoulders Pattern with Possible Drop

Key Insights

• PEPE forms a bearish head and shoulders pattern, hinting at a possible drop toward $0.00000185.
• Analysts warn that a break below the neckline could confirm a downtrend and extend losses for PEPE.
• Whale accumulation continues, but PEPE must hold key support to avoid a deeper bearish move.

The Pepe Coin (PEPE) market is showing signs of caution as the token develops a potential head-and-shoulders formation on its chart. Analysts believe that this pattern, if confirmed, could signal a further decline in the meme coin’s price toward $0.00000185.

PEPE Technical Structure Suggests Weakening Momentum

According to data from CoinMarketCap, PEPE was trading near $0.000006866, posting a modest 1.07% gain in the last 24 hours. However, technical analysis indicates that the token may be facing pressure as it approaches a key neckline between $0.00000055 and $0.00000060.

Analyst Ali Martinez reported that PEPE’s current two-day chart shows a developing head and shoulders pattern. This formation is often viewed as a sign of slowing upward momentum, especially when prices fail to maintain higher highs. The neckline area now serves as a major support zone that traders are watching closely.

If the price closes below this neckline, the setup could confirm a bearish reversal, pushing the token lower. Martinez’s projections based on Fibonacci levels suggest a possible target near $0.00000185. Such a move would represent a sharp decline from current trading levels and may extend losses into late 2025 if selling pressure continues.

Buyers Defend Key Support Levels

Despite the cautious outlook, some analysts believe that the current range around $0.00000065 to $0.00000070 still holds strategic importance. Analyst Galaxy noted that this area has served as a strong accumulation zone during past market cycles. In 2023, PEPE traded within a similar range before rallying sharply in early 2024.

The chart structure shows that the token continues to retest this long-term support level. As long as PEPE maintains its position above it, the market could see consolidation instead of a complete breakdown. This could give traders more time to assess direction while larger holders accumulate positions.

On-chain data also suggests that whales have been active since February 2025. Large wallets reportedly acquired more than four trillion PEPE tokens, which reduced the available supply on exchanges. Analysts believe that sustained buying from large holders could stabilize prices and prepare the market for a potential rebound if demand returns.

Market Outlook and Price Levels to Monitor

PEPE is trading inside a rising channel while testing resistance near $0.0000075. A daily close above this level could pave the way for $0.0000090 and $0.0000110 later. Traders see these points as essential resistance levels where sellers may reappear.

Technical indicators such as the Relative Strength Index remain around 59, suggesting moderate momentum. Support lies near $0.0000064 and the lower Bollinger Band. If the price remains above the 20-day simple moving average at $0.0000068, the short-term trend is likely to remain neutral to positive. A breakdown below these levels, however, might confirm the bearish pattern identified earlier.