Pepe Coin (PEPE) has been enjoying a notable run, but recent data hints that the party might be nearing its end. A sharp 257% surge in whale-level transactions, coupled with a classic double top pattern forming on the charts, is casting a shadow over PEPE’s short-term prospects. The big question now: is PEPE heading for a sharp correction, or will bullish sentiment from retail traders keep the meme coin afloat?
Whale Activity Points to Potential Peak
According to data from IntoTheBlock, whale transactions—those valued over $100,000—skyrocketed to 720 on May 12, aligning perfectly with PEPE’s price peaking at $0.000015. Historically, such spikes in whale activity following a rally often foreshadow a local top, as large holders begin locking in profits. We saw similar patterns in May, November, and December 2024, all preceding price corrections.
This uptick in big-money movement should not be ignored, especially with PEPE’s price already dipping to $0.00001399—down 3.19% on the day. This subtle yet significant shift could be the early warning signal of a deeper retracement.
Double Top Pattern Raises Red Flags
Adding technical pressure to the mix is the emergence of a double top—a bearish reversal formation. After nearly doubling in price from $0.0000075 to $0.000015 within a week, PEPE struggled to break past the psychological $0.000015 ceiling. Instead, the price began consolidating sideways, with $0.00001274 serving as a support baseline.
This setup has resulted in a textbook double top. If the neckline at $0.00001274 fails to hold, a confirmed breakdown could send PEPE tumbling by another 25%, potentially revisiting the $0.00001063 level. Bearish momentum is further reinforced by declining RSI levels, which suggest fading strength, and a MACD crossover, indicating increasing selling pressure.
Bitcoin’s Influence Looms Large
Meanwhile, Bitcoin’s price action could be another crucial factor. Currently hovering around $103,814, BTC is struggling to break above the $104,000 resistance. A dip below the $102,000 mark could trigger a broader correction, pulling meme coins like PEPE down with it. If Bitcoin heads back into the $93,000–$102,600 consolidation zone, expect PEPE and similar high-volatility tokens to follow suit.
Retail Traders Remain Optimistic—For Now
Interestingly, despite these bearish indicators, sentiment among retail traders remains incredibly bullish. Data shows that 72% of PEPE holders on Binance are long on the coin, pushing the Long/Short ratio to 2.57. Open Interest (OI) in PEPE futures is holding steady at $583 million, nearing historic highs, and reflecting strong engagement from leveraged traders.
But this level of optimism could backfire. If PEPE breaks the neckline support, the ensuing price dip might trigger a wave of long-liquidations, especially given how overextended current positions are. The closer OI edges toward $600 million, the more likely it is that a volatility spike—potentially downward—could be around the corner.
Final Thoughts: Time to Be Cautious?
Pepe Coin may still have strong community support, but the current on-chain and technical signals warrant caution. The surge in whale activity, the visible double top on the chart, and weakening momentum indicators are all painting a scenario in which the price could correct significantly. While bullish retail traders are holding the line, history suggests that the whales tend to lead the way—and right now, they’re making moves.
For anyone holding or trading PEPE, this is a moment to stay vigilant, watch support levels closely, and be prepared for volatility. Whether PEPE breaks down or surprises with another rally, the next few days will be telling.