PEPE’s market structure remains fragile despite rising whale accumulation, with analysts warning that the token could decline nearly 18% if buyers fail to defend a key support zone.
The digital asset has struggled to recover from a prolonged downturn, extending a broader weakening trend across the memecoin sector.
PEPE Continues Downtrend After Months of Selling Pressure
The token has dropped more than 55% over the past three months and roughly 75% over the past year, according to market data.
A brief price increase following November 21 provided limited relief, but analysts say selling pressure from smaller holders continues to dominate.
Market watchers report that despite long-term holders increasing their exposure, retail traders are sending more coins to exchanges, a signal of ongoing fear and short-term weakness.
Technical Indicators Point Toward Further Downside Risk
PEPE’s chart shows a mixed but largely bearish technical outlook. The Relative Strength Index (RSI) has formed a hidden bearish divergence, with the indicator making higher highs while price continues forming lower lows.
Analysts say this pattern suggests recent upward movements are losing strength and could reverse.
Based on current chart structures, the price remains vulnerable to an 18% pullback if it slips through nearby support. If this critical zone breaks, analysts warn that the lack of strong support underneath may accelerate losses even further.
For any meaningful trend reversal, PEPE would need to climb above nearby resistance levels, which so far remain unbroken.
Whale Accumulation Rises, but Retail Activity Drags Market Lower
On-chain data shows that larger holders and whales have modestly increased their balances over the past month.
However, this accumulation has not yet translated into upward momentum, as retail selling continues to pressure the price. Increased inflows of PEPE to exchanges indicate that smaller traders are actively seeking to exit positions.
Analysts note that “smart money” has slightly reduced exposure but not aggressively, suggesting that institutional-level buyers are not expecting an imminent rebound.
Signs of Weakening Selling Pressure Emerge
Despite the broader bearish structure, some indicators hint at early stabilization. The bull-bear power indicator shows gradually shrinking seller dominance since early October, signaling that downward momentum may be slowing.
A potential double-bottom pattern forming in mid-December has been identified by some analysts as well. If confirmed, it could help support a future reversal, though only if critical support levels hold.
Outlook Hinges on Key Support Levels
PEPE’s near-term direction depends heavily on whether buyers can defend the current support zone.
Analysts warn that failure to do so could open the path to deeper declines. Conversely, any meaningful recovery requires a break above local resistance to shift momentum back in favor of bulls.
While whale accumulation may provide long-term support for the token, analysts conclude that it has not yet altered PEPE’s short-term bearish outlook.