The price of Pepe (PEPE), the second-largest meme coin on the Ethereum network, declined on Saturday, May 24, reflecting the broader downturn across the crypto market. Pepe dropped by 6.02% to trade at $0.000014, nearly 14% below its weekly high, as geopolitical tensions and macroeconomic risks spooked investors.
Market-Wide Selloff Follows Trump’s Tariff Threats
The retreat in Pepe coincided with a dip in Bitcoin and other altcoins after former U.S. President Donald Trump threatened to impose sweeping tariffs on European goods and Apple products. This announcement triggered a sharp risk-off sentiment across global markets.
The total crypto market capitalization fell from over $3.5 trillion on Friday to $3.4 trillion on Saturday, signaling widespread profit-taking and investor caution heading into the weekend.
Whale and Smart Money Holdings in Decline
On-chain data adds to the bearish outlook. Santiment reports that whale holdings of Pepe have dropped to 141.2 trillion coins, valued at approximately $1.4 billion the lowest since November 2024 and a significant fall from 165 trillion in February.
Likewise, Nansen data shows that smart money investors defined as seasoned and historically successful market participants have been steadily trimming their positions. These investors now hold 244 billion Pepe coins, down from 380 billion a year ago.
Rising Exchange Balances Raise Alarm
Adding to the concern, Pepe balances on centralized exchanges climbed to 252.9 trillion coins, up from 251.3 trillion earlier this week. This uptick typically signals potential selling pressure, as more tokens being moved onto exchanges often precedes increased liquidation.
Technical Indicators Signal Possible Upside
Despite the bearish fundamentals, Pepe’s technical outlook remains promising. The daily chart shows the emergence of a golden cross pattern, with the 50-day and 200-day Exponential Moving Averages (EMA) nearing a bullish crossover. Historically, this pattern has signaled long-term upside momentum in crypto markets.
Additionally, Pepe has formed a rounded bottom pattern, typically viewed as a continuation signal in bullish trends. Should Pepe break above its weekly high of $0.00001625, analysts suggest the coin could rally toward a new record high of $0.00002840.
Mixed Signals in a Volatile Market
Pepe’s price drop reflects broader market anxiety stemming from macroeconomic headwinds and geopolitical tensions. The reduction in whale and smart money holdings, along with rising exchange reserves, points to cautious investor behavior.
However, strong technical formations hint at a potential rebound, especially if sentiment stabilizes and buyers step back in. In the coming weeks, Pepe’s price action will likely depend on both macro developments and whether key resistance levels can be reclaimed.
