Pepe (PEPE), the meme-inspired Ethereum token that exploded in popularity earlier this year, is now showing clear signs of exhaustion. After a blistering rally that captured the imagination of retail traders and fueled speculative mania, PEPE has entered a phase of pronounced weakness—both on-chain and on the charts.
As of June 10, PEPE is trading at $0.000012, down more than 25% from its May high and well below its all-time peak of $0.00002838. The decline comes amid rising on-chain red flags, sustained whale outflows, and a classic head-and-shoulders (H&S) pattern that has begun to take shape on the multi-day chart. The combination suggests that unless bulls reclaim key resistance levels soon, the token could be heading for a deeper correction.
A Slow Bleed: Decline in Network Activity and Whale Confidence
On-chain metrics point to fading interest in the PEPE ecosystem. Daily active addresses, a key proxy for usage and engagement, have been trending downward steadily since mid-May. Even more concerning, network growth—defined by the number of new addresses interacting with PEPE for the first time—has dropped from 2,436 in May to just 837 by early June, according to blockchain analytics firm Santiment.
In the crypto market, the behavior of large holders—or “whales”—can often serve as a bellwether for broader investor sentiment. Here, the signs are unequivocal: whales are selling. The amount of PEPE held by wallets with large token balances has fallen to 132.9 trillion, with a steep downward trajectory persisting for the last two weeks.
“When you see a sustained exodus of whales without corresponding retail inflows, that’s typically the market telling you the narrative is over—at least for now,” said Alex Morrell, a portfolio manager at a digital asset hedge fund in New York.
These whales, often early backers or high-frequency trading desks, tend to exit positions just as retail enthusiasm starts to fade. Their selling pressure compounds downward momentum and limits the possibility of meaningful rallies in the short term.
Technicals: Head-and-Shoulders Pattern Points to Breakdown Risk
From a technical analysis perspective, PEPE’s chart structure is also flashing warning signs. On the three-day chart, the token has formed a textbook head-and-shoulders pattern—considered one of the most reliable bearish reversal formations.
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Left Shoulder: $0.00001632
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Head: $0.00002838
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Right Shoulder: $0.00001632
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Neckline Support: $0.0000057
This setup suggests that if PEPE breaks below its neckline—currently sitting near $0.0000057—it could retrace toward that level with force, representing another 50% drop from its current price. The pattern also implies that bullish momentum has been weakening over time, with successive peaks showing less conviction and shorter-lived rallies.
The failure to reclaim $0.00001632—the level that defines the right shoulder—is especially critical. That zone now acts as major resistance and must be flipped into support for bulls to regain control.
Money Rotates into Bitcoin-Based Meme Coins
As PEPE falters, capital is flowing toward newer meme tokens—specifically those tied to the Bitcoin ecosystem. The most prominent among them is Bitcoin Pepe (BPEP), a still-unreleased token that has raised over $14 million in its ongoing presale.
Unlike traditional Ethereum-based meme coins, BPEP aims to build on Bitcoin’s growing layer-2 infrastructure, taking advantage of the surging interest in protocols like Ordinals, Stacks, and BitVM.
“BPEP is positioning itself as more than just another meme—it’s a meme coin infrastructure layer on Bitcoin. That combination is very appealing to investors chasing the next narrative,” said Rachel Lin, co-founder of SynFutures and a former VP at Matrixport.
Bitcoin-native innovation is picking up speed. Ordinals have turned Bitcoin into a viable NFT platform, and Bitcoin is now the third-largest chain by Total Value Locked (TVL), largely due to new staking protocols and sidechain activity. The market is beginning to treat Bitcoin not just as a store of value, but also as programmable infrastructure—bringing meme tokens along for the ride.
What to Watch: BPEP Token Generation Event on Deck
Investors are closely watching for the next major event in the Bitcoin Pepe timeline: its Token Generation Event (TGE), which the team has scheduled for later this month. While full exchange details haven’t been disclosed, the project claims to be in talks with multiple Tier-1 exchanges for listing upon launch.
A successful TGE and high-profile listing could provide BPEP with significant momentum—particularly if Bitcoin’s price continues to trade near record levels and Ethereum-based meme coins like PEPE remain stagnant.
The strength of BPEP’s presale suggests that it may attract not just retail interest but also institutional capital looking to capitalize on the intersection of Bitcoin infrastructure and meme-driven culture.
The recent price action in PEPE marks a decisive shift in momentum. The surge in whale outflows, the decline in network participation, and the formation of a head-and-shoulders reversal pattern all suggest that the token may be headed lower—potentially much lower—unless bulls can rapidly reassert dominance.
So far, that hasn’t happened. Price remains below the critical resistance at $0.00001632, with no signs of renewed buying interest. Barring a dramatic reversal, the path of least resistance remains down.
For investors, the lesson may be broader: meme coins are no longer a monolithic category. With Bitcoin’s infrastructure gaining steam and Ethereum-based meme tokens losing traction, capital is rotating. And as it stands, PEPE is on the wrong side of that shift.
