PEPE’s Downturn: Is This a Bear Market Slide or the Start of Meme Season 2.0?

PEPE's Steep Drop Ignites Discussion on Possible Recovery or Further Losses

The

coin has tumbled to its lowest point in several months, sparking heated debate among market watchers about whether the token is bottoming out or if more losses are ahead. After breaching major support zones and , PEPE is now valued around $0.00000485. Technical signals and blockchain data offer conflicting views, with some pointing to a potential rebound and others indicating continued bearish pressure.

Crypto Patel, an analyst, notes that

has shifted the broader trend to bearish, turning that level into resistance. The token continues to trade below all significant exponential moving averages, and the MACD remains in negative territory, . A weekly fair value gap (FVG) is still partially open, with liquidity being swept below recent lows, toward $0.00000178—a price Patel identifies as a potential accumulation area for long-term investors.

Blockchain metrics add to the unease.

to $193.5 million from over $1 billion in mid-2023, showing less leverage and a cooling market. Net flows on spot exchanges remain negative, than deposited, a sign of decreasing demand. At the same time, the losses seen in other top meme coins, with the token down 75% so far this year.

Despite the prevailing bearish trend, a short-lived rally. A 12%-15% upward move to resistance levels at $0.00000524 and $0.0000066 is considered possible, fueled by a bullish stochastic RSI crossover and a potential short squeeze as liquidation areas cluster between $0.000005 and $0.0000055. $950 million in futures volume over 24 hours and $170–$176 million in open interest, indicating a resurgence in trading activity.

There are also signs of hope among the community. Although PEPE has dropped 18% recently,

, with , , and other meme coins possibly set to benefit from a broader comeback. With 5.7 million holders—including exchange wallets—PEPE ranks among the most widely held meme coins, providing a strong foundation for future rallies.

The market is at a crossroads:

nearly $1 billion in combined futures and spot inflows, highlighting both selling pressure and speculative interest. This pattern echoes previous cycles, a similar period of breakdown and consolidation. Still, liquidity for the token remains thin, rather than on decentralized exchanges.

the $0.0000059 threshold, which would mark a shift from bearish to bullish sentiment. Until that happens, , with a potential 60–70% drop to $0.00000178 still possible. For now, traders are watching the Federal Reserve's interest rate decisions and overall market mood, continues to impact riskier assets.