Date: Wed, April 16, 2025 | 06:10 AM GMT
The cryptocurrency market continues to face strong bearish pressure, extending a correction phase that began after the rallies of late 2024. Ethereum (ETH) has plunged from its December high of $4,000 to its current level of $1,569, putting significant strain on altcoins and memecoins across the board.
Among those feeling the heat is Ethereum-based top memecoin Pepe (PEPE), which has declined sharply by over 61% in the last 90 days. However, with recent whale accumulation and a slight market recovery, PEPE has surged by 12% in the past 7 days, hinting at a potential reversal.
Source: Coinmarketcap
Whale Accumulation
As the broader market shows signs of stabilizing, notable buying activity has been spotted in PEPE. According to a report from Lookonchain , five wallets spent a combined $4.28 million to acquire 611 billion $PEPE within just eight hours.
Source: @lookonchain (X)
These wallets reportedly withdrew ETH from Tornado Cash roughly 15 days ago—potentially linked to a hacker—but the focus now shifts to what their heavy buying could mean for PEPE’s price.
Head & Shoulders Formation in Play?
By looking at the weekly chart, PEPE appears to be forming a textbook Head and Shoulders pattern — typically viewed as a bearish reversal pattern, but in this case, it may be setting up for a bounceback to complete the potential right shoulder.
PEPE Weekly Chart/Coinsprobe (Source: Tradingview)
The pattern began forming in September 2024 with a left shoulder, followed by a massive rally of over 300%, which formed the head. After peaking, PEPE entered a steep 80% correction, bringing the price down to the neckline region—currently around $0.0000070—where it now trades.
From here, if the pattern plays out, PEPE could see a sharp relief rally toward the $0.000017 resistance zone, which would complete the right shoulder. That move would represent a potential 142% gain from current levels.
Adding to this setup, the MACD indicator is showing early signs of bullish momentum, curving up from deeply oversold territory—another hint that a short-term bounce may be brewing.
What’s Ahead?
While nothing is guaranteed in crypto, especially with meme tokens, the combination of strong whale interest, a major support retest, and a possible head and shoulders formation makes PEPE one to watch in the near term. A decisive move above neckline resistance could open the door for further upside, while failure to hold this zone could invalidate the pattern and continue the broader downtrend.
For now, the next few weeks will be crucial in determining whether this setup is the beginning of a broader reversal—or just another bear market bounce.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
