Frog flops as Pepe coin supply crashes to a two-year low: But is it setting up for a leap?

Pepe coin price continued its sell-off on Saturday, moving to its lowest point since May 9, as the crypto sell-off accelerated.

Pepe (PEPE) dropped to a low of $0.00001096, down by 32% from its highest point this year. 

On the positive side, the supply of Pepe coins on exchanges has crashed to 105.33 trillion, its lowest level since 2022. It has also fallen from last year’s high of 215 trillion, a sign that holders are not selling their coins. 

Nansen data shows that the number of Pepe coins whales hold has increased this month. These investors now hold 9.71 trillion coins, a 2.74% increase from April. 

Accounts labeled as smart money have also continued to accumulate Pepe this month. Their holdings jumped to 625 billion, a 145% month-on-month increase.

Whales are individuals and entities holding large amounts of coins, and their actions can influence their performance. On the other hand, savvy money investors are those that Nansen has determined have a long track record of success.

Another bullish case for Pepe is that its positive funding rate has been rising since May 8. A positive funding rate is a sign that investors believe a coin’s future price will be higher than the spot rate. 

Pepe coin price analysis

The daily chart shows that the Pepe price peaked at $0.00001625 in May and then pared back some of these gains to $0.00001095. Its weekly low was notable since it aligned with the 100-day Exponential Moving Average and the highest swing in September last year.

Pepe moved below the lower side of the bullish flag pattern, while the Relative Strength Index and the MACD have pointed downwards.

Therefore, technicals point to more downside, potentially to the 78.6% retracement level at $0.00001057, and then it will bounce back as bulls target the 50% point at $0.000017.