Pepe (PEPE) slid 7.66% over the past 24 hours, significantly lagging behind the broader cryptocurrency market, which posted a modest gain of 0.44%. The decline stems from a confluence of factors: profit-taking following an extended rally, a failed test of key technical support, and cooling derivatives activity that reflects growing trader caution.
The recent pullback follows a dramatic 54% surge in PEPE’s price over the last 30 days, which carried it to a local peak near $0.00000680 on January 14. As the token approached well-watched resistance levels, traders—particularly large holders—began offloading positions to lock in gains. On-chain data reveals that whales have distributed approximately 2.8 trillion PEPE tokens since late December, adding meaningful sell-side pressure. This behavior is typical for memecoins, whose prices are driven almost entirely by sentiment rather than fundamentals, making them prone to sharp reversals after rapid ascents.
Technically, PEPE’s structure has turned bearish. The price failed to hold above the psychologically and technically significant $0.00000660 level—a zone aligned with both the midpoint of its Gaussian channel and the 23.6% Fibonacci retracement at $0.00000637. The breakdown below this support invalidated short-term bullish setups and reinforced a downtrend, especially as the token now trades beneath critical moving averages, including the 200-day simple moving average at $0.00000823. While the RSI sits at a neutral 60.08, the narrowing MACD histogram suggests waning upward momentum, tilting the near-term bias toward bears unless $0.00000660 is decisively reclaimed.
Derivatives markets echo this cautious sentiment. Open interest in PEPE futures contracts dropped by 10.13% within 24 hours, signaling reduced leverage and speculative appetite. Meanwhile, spot trading volume rose 8.12% to $990 million, indicating some absorption of sell orders by cash buyers. However, liquidation data shows a stark imbalance: $2.99 million in short positions were liquidated compared to just $0.11 million in longs, suggesting that while spot demand exists, fresh bullish conviction remains absent. Without renewed speculative interest or a catalyst, PEPE may struggle to mount a sustained recovery.
In the near term, all eyes are on the $0.00000585–$0.00000600 range, a potential demand zone that could determine whether this correction stabilizes or deepens. For PEPE to regain bullish traction, reclaiming $0.00000660 will be essential. Until then, the token remains vulnerable in a market increasingly wary of overextended memecoin rallies.
Source:: Profit-Taking and Technical Breakdown Trigger PEPE’s Sharp Pullback