Pepe Coin has dropped more than 70% from its 2025 peak, raising questions about its future. As key holders exit positions and volume fluctuates, concerns grow. Recent whale activity and smart money sell-offs may hint at more downside ahead. The coin, once a leading meme token on Ethereum, now faces price pressure from multiple fronts. Investors are closely watching for the next major move.
Smart Money Investors Reduce Exposure to PEPE Coin
The number of smart money investors holding Pepe Coin has decreased steadily over the past year. According to Nansen , only 17 smart wallets held PEPE on May 7, compared to 32 in November 2024. These wallets now hold 2.79 trillion PEPE tokens, a drop from 4.24 trillion in June 2024.
Smart investors often sell near market tops. Their continued exit may indicate fading confidence in PEPE’s long-term value. Many of these investors have shifted focus toward meme coins on the Solana network, which has seen stronger momentum. This rotation reduces demand for Ethereum-based meme assets like Pepe Coin.
Source: Nansen
Ethereum’s price decline from over $4,000 in 2024 to around $1,800 in 2025 has also weighed on sentiment. As ETH weakens, investors often move away from related tokens. PEPE, being one of the largest Ethereum meme coins, is directly affected by these broader shifts.
Liquidation Patterns Suggest Weak Market Confidence
Between April 2 and April 7, long liquidations spiked above $2.7 million, showing that bullish traders were caught off guard. This volatility was followed by a sharp rise in short liquidations around April 10, pointing to a temporary price squeeze. These movements did not lead to a lasting recovery.
From April 11 to April 23, both long and short liquidations occurred frequently. This pattern showed that traders lacked clear direction. PEPE coin did gain briefly after April 23, but volume data suggests it was not supported by strong buying.
Source: CoinGlass
Early May saw another round of long liquidations. On May 6, close to $2 million in long trades were liquidated. This coincided with a price dip, but a small rebound followed on May 7. However, short liquidations remained low, pointing to a bearish market mood overall.
Whale Transactions Increase Amid Price Stabilization
There has been a sharp increase in whale activity in early May. On May 6, there were 128 large transactions involving Pepe Coin , nearing the May 1 peak of 149. These moves suggest high-value traders are adjusting their positions in response to market shifts.
Large holders often act before retail investors. When their transaction volume increases during sideways price movement, it often signals preparation for future volatility. On May 3, the count dropped to 55 transactions, the week’s low, before quickly rising again. This bounce could show a change in strategy among bigger investors.
Source: IntoTheBlock
The total market cap is now around $3.4 billion, far below the $11 billion seen earlier in 2025. However, the coin is showing signs of short-term stability, trading between $3 billion and $4 billion for several weeks.
However, at press time, bullish momentum was still in control, with the PEPE price trading at $0.00001231 after over 15% surge from the intraday low. During the rally, PEPE’s market capitalization and 24-hour trading volume rose by 15.7% and 161.26%, respectively, reaching $5.17B and $3.85B.
Technical Indicators Show Mixed Trends
On the daily scale, PEPE is trading at around $0.00001231. The price has established higher lows in the current trading sessions as perceived in the earlier graph. This might indicate some level of base building although volume is still not very high..
The MACD is bearish, but the lines are convergent , indicating an assessment of a convergence signal. The histogram is also becoming smaller in size, which can be an indication of a diminishing bearish trend. If the blue line crosses above the orange one, a short-term bullish trend can be expected.
Source: TradingView
The RSI value stands at 43.97, below the 50 level, but the indicator is on the rise. The level above 50 suggests stronger buying influence in the market. Until then, traders remain cautious.
Currently, the market capitalization of PEPE has dropped to below 70% of its peak. Prices consolidate but the dynamics of whales and smart money will probably dictate the direction of the price trends.
