PEPE Plunges: Head-and-Shoulders Pattern Signals 66% Drop

The cryptocurrency PEPE has confirmed a significant bearish reversal pattern, breaking below the crucial neckline support at approximately $0.0000065. This move completes a well-defined head-and-shoulders formation identified by analyst Ali Martinez, a pattern historically known for signaling the reversal of uptrends when confirmed by such a breakdown. The current price of $0.00000558 represents a weekly decline exceeding 17%, with the technical structure pointing toward further substantial losses.

According to the chart analysis posted by Ali Martinez, the measured move projection from this head-and-shoulders breakdown targets $0.00000185. This projection represents a potential 66% decline from current levels and is calculated based on the distance from the top of the pattern’s head to the neckline support level. The chart analysis also identifies potential interim support levels at $0.00000490 and $0.00000333 before the asset potentially reaches the primary target zone.

Technical indicators across multiple timeframes continue to support the bearish narrative for PEPE. The cryptocurrency remains firmly below its 9-day exponential moving average (EMA), indicating sustained downward momentum. The Relative Strength Index (RSI) reading of 30 places the asset near oversold territory, yet this condition alone has not triggered any meaningful reversal, suggesting continued weakness in the near-term trend structure.

Trading volume dynamics further compound the bearish technical picture. Daily trading volume has plummeted to approximately $310 million, representing a decline of more than 50% compared to the previous day’s levels. This significant volume drop typically indicates diminishing buyer interest and reinforces the pattern’s bearish implications. Without a substantial return of volume or renewed buyer participation, the technical structure suggests the downtrend may persist.

Despite the overwhelmingly bearish technical structure, derivatives data from Coinalyze reveals a potentially conflicting signal. The aggregated funding rate has flipped to positive territory, currently standing at +0.0100 with a predicted rate of +0.0056. This shift from negative to positive funding rates suggests that some traders are beginning to position for a potential bounce or near-term recovery in PEPE’s price action.

However, the positive funding rate shift alone appears insufficient to counter the dominant bearish technical structure. Until PEPE can reclaim and sustain levels above the critical $0.0000065 resistance zone—the former neckline support—the head-and-shoulders pattern remains technically valid. The current market structure continues to favor sellers, with the path of least resistance pointing toward the projected $0.00000185 target unless significant buying pressure emerges to invalidate the pattern.