Pepe Coin Price Rises 14%, but Signals Indicate a Fragile Bearish Setup

Pepe Coin's price surged by 14% in the last 24 hours, mainly driven by retail investors. Despite this uptick, the coin appears to be trapped in a bearish trend, with indicators suggesting a potential head-and-shoulders pattern, signaling possible challenges ahead.

Key Takeaways

Pepe Coin's price increased by 14% within 24 hours, largely due to retail buying.
The rise occurred without significant investment from large holders, indicating weak support.
Technical signals show hidden bearish divergence and a possible head-and-shoulders pattern, raising caution.
Current market trends suggest that maintaining price levels above support is crucial for any sustainable upward momentum.

Pepe Coin frog trader watching volatile crypto price chart

Pepe Coin's Recent Performance

Pepe Coin's price saw a notable increase of around 14% over the past day, ranking it among the top performers in the memecoin sector during this trading period, according to market metrics. However, the token remains considerably lower in value over the past month and three months, situating this recent increase within a larger downward trajectory.

This price bump happened without backing from major investors, as indicated by recent data. Whale wallets and the top 100 addresses did not increase their holdings of PEPE (PEP) during the 24-hour span, and institutional investor groups remained inactive throughout the price movement, highlighting a lack of strong belief in the rally's sustainability.

“$PEPE just woke up crazy. Dropped to 0.00000395 like it was dead, then boom — full green sprint to 0.00000473. Buyers hitting hard. Watch that 0.00000480 wick. Above 0.00000462–472 = momentum alive. Slip back = cooldown. Chart saying: don’t blink bro.”
— Mark Selby (@imMarkselby440) December 3, 2025

Diverging Patterns in PEPE Coin Price

Analysis of exchange outflow data reveals that the majority of buying activity was driven by smaller retail wallets, as per on-chain metrics. This trend suggests that the price increase occurred without substantial support from major holders, with potential outflows indicating sales from top PEPE holders during the price rise.

“$PEPE

The RSI is approaching a breakout from the descending resistance line. Due to the overbought signal on the Stochastic RSI, the risk of another rejection is present. Should the breakout occur, the trendline may be retested as support.”
— Morja 🐸 (@Crankzzzzzz) December 3, 2025

Data from the derivatives market points towards cautious positioning among larger traders. Whale investors have decreased their long positions, while leading traders have significantly reduced their long exposure during the price uptick. Although smart-money traders still hold a predominantly bearish outlook, there is a slight shift toward long positions.

Technical analysis has revealed a hidden bearish divergence between late November and early December, where the price has formed a lower high while the Relative Strength Index displayed a higher high. This pattern frequently suggests a continuation of a downtrend following short-term gains.

Market analysts noted that the token must sustain levels above its immediate support to exhibit stability. A confirmed trend reversal would necessitate breaching resistance roughly 15% above the current price levels, while a drop below nearby support could point to a major support level and potentially wipe out recent gains.

Some experts have indicated a potential head-and-shoulders pattern is forming; however, confirmation of this requires increased trading volume. Current volume levels indicate that a trend reversal has not yet been substantiated, suggesting that the recent rise might be part of the right shoulder of a bearish pattern in line with the lower high identified in price action.

For any trend change to be validated, a substantial increase in trading volume is essential. The disparity between the price rise and the actions of large investors, prominent traders, and momentum indicators poses questions about the sustainability of the recent rally without broader market endorsement.