Here’s why Pepe Coin price may miss the Uptober rally

Pepe Coin price remains in a deep bear market, and on-chain data and its weak technicals point to a crash in the coming weeks or months.

Pepe Coin (PEPE) token was trading at $0.000010 on Thursday, Oct. 2, down by 40% from the highest point in May this year. Its market capitalization has dropped to over $4.2 billion, down from the all-time high of over $10 billion.

Pepe Coin price has technical points to more downsides

The daily timeframe shows that the Pepe price topped at $0.00001645 on May 23 as the crypto market rallied.

Since then, the coin has formed a series of lower lows, with its attempts to rebound facing substantial resistance.

The coin has formed a descending triangle pattern, which consists of a descending trendline and a horizontal support at $0.0000091. The support coincided with the ultimate support level of the Murrey Math Lines tool.

This pattern often leads to a strong bearish breakout, which is normally confirmed when it moves below the support level. If this happens, the next key level to watch will be at $0.00000759, its lowest level in May last year, and the extreme oversold level.

The bearish Pepe price forecast will become invalid if it moves above the descending trendline of the triangle pattern. If this happens, it may rally to the psychological level at $0.000015.

On-chain data shows that whales are dumping Pepe tokens 

Another reason why the Pepe Coin may not participate in the Uptober rally is that whale investors continue to dumb it, a sign that they expect it to keep falling.

Nansen data shows that whale holdings have dropped by 22% in the last 30 days. These investors now hold 6.11 trillion tokens, down from 7.5 trillion on the same day last month. Historically, whale selling is usually a bearish sign.

The same trend is happening among smart money investors and public figures. Smart money investors have reduced their holdings by 65% in the last 30 days to 912 billion tokens, while public figures have cut their holdings by 65%.