- Pepe (PEPE) dropped to $0.0000156, its lowest since December 20, amid broader crypto and equity market declines.
- Upcoming CPI data, expected to show inflation rising to 2.9%, could influence the Federal Reserve’s stance and further impact crypto prices.
- Pepe’s futures open interest remains steady at $438 million, but bearish technical patterns hint at a potential drop toward $0.000010.
Pepe (PEPE), the third-largest meme coin, recently hit a new low at $0.0000156, its lowest price since December 20. This drop comes as bond yields surge and major financial markets, including American equities and cryptocurrencies, face sharp declines.
Market Conditions Weigh on PEPE and Crypto
The recent dip coincides with significant losses across major indices:
- The Dow Jones fell by 700 points,
- The Nasdaq 100 dropped 245 points, and
- The S&P 500 slid by 35 points.
Bitcoin (BTC) wasn’t spared either, falling to $90,000, while the overall crypto market capitalization declined by 4% to $3.19 trillion. Rising fears of continued hawkish monetary policies by the Federal Reserve have fueled this sell-off, as the U.S. economy remains resilient with unemployment at 4.1% and robust job growth.
Key Catalysts Ahead
The next big driver for Pepe and other cryptocurrencies is the upcoming Consumer Price Index (CPI) report, set to release on Wednesday. Economists predict headline inflation will rise from 2.7% in November to 2.9% in December, reinforcing expectations that the Fed will maintain high interest rates.
Additionally, policies proposed by Donald Trump, such as tariffs and deportations, could further stoke inflation concerns, putting more pressure on risk assets like cryptocurrencies.
Pepe Futures Open Interest Remains Steady
Despite the downturn, there’s a glimmer of hope. Pepe’s futures open interest has stayed steady, rising to $438 million on January 13 and holding at that level. This steady open interest indicates that traders are still paying attention to PEPE, a potential sign of ongoing market interest.
Technical Analysis: A Risky Pattern Emerges
Pepe’s daily chart paints a bearish picture:
- The price peaked at $0.00002845 on December 9 but has since fallen below the 50-day and 100-day moving averages.
- A head-and-shoulders pattern, a classic reversal indicator, has formed, signaling potential further downside.
Momentum indicators like the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) show bearish divergences. If Pepe breaks below the 50% Fibonacci retracement level at $0.00001465, it could drop further toward the psychological support level at $0.000010.
Outlook
Pepe remains under pressure, driven by both macroeconomic factors and bearish technical signals. However, steady futures interest offers a sliver of optimism. Traders should closely watch key support levels and the CPI report for clues on the coin’s next move. Whether it finds a rebound or slides further, the coming days will likely be pivotal.
