Market Sentiment Turns Negative: Is PEPE Price On The Brink Of A Breakdown?

• Trading volume surged in PEPE crypto by 57%, indicating intensified selling pressure.
• Bearish traders have positioned $14.99 Million in leverage for further declines.
• On-chain data shows a 94% drop in large transactions, reflecting reduced interest.

Meme coins are known for their extreme volatility, with PEPE crypto being one of the most notable examples of this. In Q1 2024, PEPE saw remarkable growth, skyrocketing from $0.00000086 to $0.00002847, marking an increase of over 3000%. However, like Bitcoin and many other leading cryptos, PEPE price experienced a sharp decline in December.

Entering January 2025, bearish market sentiment took hold, pushing PEPE price below both its 20-day and 50-day EMA bands. This has signaled ongoing weakness.

Over the past month, the token has lost more than 40% of its value, and in just this week, it has dropped by more than 25%. On an intraday basis, it fell over 10%, likely influenced by Bitcoin’s 4% dip beneath $91K.

At the time of writing, PEPE price was trading at $0.00001620, with a market capitalization of $6.82 Billion. Following this, the 24-hour trading volume surged by 57%, reaching $1.06 Billion. This directly indicates towards mounting selling pressure.

Moreover, this baersih pressure seen in PEPE crypto suggests that traders are rapidly reducing their exposure to high-risk meme coins amid broader market instability. Furthermore, the number of significant on-chain transactions has seen a notable drop, and leverage liquidation data indicates that most traders expect further downward momentum.

Continue reading to know more.

PEPE Exchange Liquidation Map Shows Further Breakdown in Price Could Occur

The decline in PEPE price coincides with broader crypto market downturns, driven by mounting macroeconomic uncertainty. Bearish traders have heavily positioned themselves, deploying $14.99 Million in leverage, betting on further declines.

Similarly, the concerns over tightening financial conditions and reduced liquidity have led many traders to scale back on high-risk assets. In particular, bear traders in PEPE crypto have strategically increased their leverage to capitalize on the current market trend.

Data from the 1-Day PEPE Exchange Liquidation Map reveals a sharp rise in short positions, which now total $14.99 Million, compared to just $3.60 Million in long positions. This imbalance reflects the prevailing bearish sentiment, with the majority of traders expecting PEPE price to fall further.

Therefore, such a significant focus on short positions indicates that many traders are aggressively using leverage, anticipating amplified profits if PEPE price continues to decline. This suggests that further price drops for PEPE in the near future are a strong possibility.

Lack Of Network Activity Reflects Declining Attention in PEPE Crypto

The large-transaction number chart shows that transactions peaked at over 3,000 in mid-November 2024. But, the recent on-chain data reveals a notable decline in large transactions. This indicates waning interest in PEPE crypto amid a shifting bearish market.

Even in the early days of 2025, the transaction volume continued its downward trajectory. This signals that market participants are distancing themselves from high-risk assets like the meme coin PEPE.

When writing, they had plummeted to below 140. This represents a dramatic drop of over 94%. The decrease in network activity reflects a broader hesitance to engage with speculative tokens as market sentiment turns increasingly negative.

PEPE Price Prediction: Will Pepe Price Rise or Fall?

PEPE price is approaching its 200-day EMA band after facing rejection from a dynamic trendline earlier this week. The meme coin appears to have formed a bearish pattern known as head and shoulders, with the price potentially on the verge of breaking the neckline.

If the neckline is breached, a further bearish decline is expected, with the 200-day EMA band around $0.00001414 being the initial target. If this level is broken, the next significant support lies at $0.00001000.

All technical indicators are reinforcing the bearish outlook. The Chaikin Money Flow also known as the CMF has dipped below the zero line to -0.16, signaling negative market pressure. The RSI is nearing oversold conditions, currently at 38.46.

Additionally, momentum indicators, such as the MACD and AO, are both declining below the zero line. The MACD is showing a bearish crossover, further confirming the prevailing downtrend.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.