- Steep Decline and Market Panic: PEPE has dropped 23% in a week, triggering over $20 million in liquidations, with bearish sentiment and panic selling worsening the situation.
- Key Technical Weakness: The token failed to break above critical resistance, remains trapped below $0.000010 support, and faces further downside as RSI trends near oversold levels.
- Recovery Hopes Slim: While a break above the 0.236 Fibonacci resistance could spark a rebound, heavy resistance between $0.000019-$0.000021 may lead to increased selling pressure.
The recent price drop in Pepe (PEPE) has shaken things up—big time. In just two days, over $20 million in leveraged positions got wiped out, leaving traders reeling. So, the big question is: can the Pepe coin make a comeback? Let’s dive into today’s PEPE news and see what’s going on.
Pepe’s Wild Ride: Price Plummets 23% in a Week
PEPE, the infamous frog-themed meme coin, is hovering around $0.000010 after a brutal 23% nosedive over the past week. For traders caught in the turbulence, the losses have been nothing short of painful. Sunday alone saw an 11% plunge, with PEPE briefly crashing to $0.000007 during Monday’s Asian trading session. It managed a slight recovery afterward, but let’s be honest—the market’s still looking pretty grim.
Bearish sentiment is running rampant. Funding rates have flipped negative, and on-chain metrics? Yeah, they’re pointing to even more downside risk.
Bearish Sentiment Signals Even More Trouble Ahead
The mood around PEPE is going from bad to worse. According to on-chain data, traders are increasingly pessimistic. One key metric—the OI-Weighted Funding Rate—has tanked to -0.0059%. Translation? Short sellers are paying funding fees to long traders, meaning there’s a lot more money betting on further declines than on a bounce-back. Not a great sign.
Meanwhile, Santiment’s Network Realized Profit/Loss (NPL) shows just how deep the panic runs. Between Saturday and Monday, NPL plummeted from -1.32 million to a staggering -48.36 million. Investors are panic-selling PEPE at a loss, which has only made things worse. Historically, this kind of sharp drop in realized profits usually signals capitulation—basically, when people give up and dump their holdings.
Technical Outlook: Critical Support Levels Tested
From a technical standpoint, things aren’t looking much better for PEPE. The token recently failed to break above a descending trendline that’s been holding it down since December. The rejection sent it into a continued downtrend.
PEPE tested the key support level of $0.000010 but couldn’t establish much momentum. Since its rejection at $0.000014 on January 18, the price has dropped almost 47%. Now, it’s stuck at a psychological threshold. If it can’t hold above this level, PEPE could be staring at even steeper losses.
Technical indicators aren’t providing much comfort either. The Relative Strength Index (RSI) is sitting at 32 and heading downward. That’s close to oversold territory, sure—but it still leaves room for more declines before any serious rebound is likely.
Crash or Comeback? Key Levels to Watch
So, what’s next for PEPE? If the coin closes below $0.000010 on the daily chart, brace yourself. It could face a deeper drop, possibly revisiting the August low of $0.0000063. This would likely happen if bearish sentiment keeps piling on and buyers stay on the sidelines.
However, not all hope is lost (yet). If PEPE manages to flip the 0.236 Fibonacci resistance level, it could regain some upward momentum. In that case, we might see a push toward $0.000020. But there’s a catch—between $0.000019 and $0.000021, around 75 trillion PEPE tokens are being held at a loss. If the price approaches this zone, traders might rush to sell and break even, leading to a surge in selling pressure.
Market Uncertainty Lingers
The recent chaos in PEPE’s price action highlights the uphill battle meme coins face when it comes to sustaining upward momentum. While the broader crypto market is showing some signs of recovery, PEPE’s still stuck in a tough spot. The surge in liquidations and bearish sentiment isn’t helping its case.
For any sustainable rally to take shape, PEPE needs significant buying interest and a breakout above key resistance levels. Until then, it’s anyone’s guess whether this dip is just a temporary setback or the start of a prolonged slide. Traders are keeping a close eye on the charts, ready to react to the next big move—whatever that may be.
