Can the Pepe crypto price recover? Let’s check today’s Pepe coin news for more.

The frog-themed meme coin, which currently hovers around $0.000010, has suffered a steep 23% decline over the past week, triggering widespread losses among traders.

PEPE experienced an 11% drop on Sunday, briefly dipping to $0.000007 during Monday’s Asian session before recovering slightly. Despite this temporary rebound, bearish sentiment remains strong, with funding rates turning negative and on-chain indicators pointing to further downside risks.

Bearish Sentiment Signals Further Declines

Market sentiment surrounding PEPE continues to deteriorate as on-chain data highlights growing pessimism. One of the key indicators, the OI-Weighted Funding Rate, has dropped to -0.0059%, meaning that traders betting on further price declines outnumber those expecting an uptrend. This metric suggests that short positions are currently paying funding fees to long traders, a sign of prevailing bearish pressure.

Pepe Coin’s recent price action received mixed reactions from meme coin communities. Source: Chandler via X

Another crucial indicator, the Network Realized Profit/Loss (NPL) from Santiment, underscores the extent of market distress. The NPL fell sharply from -1.32 million to -48.36 million between Saturday and Monday, indicating that investors are offloading PEPE at a loss, further exacerbating the sell-off. Historically, such sharp declines in realized profits have been linked to panic selling and market capitulation.

Technical Outlook: PEPE Faces Critical Support Levels

From a technical perspective, PEPE is struggling to maintain crucial support levels. The price recently failed to break above a descending trendline that has been in place since early December, resulting in a continued downtrend.

PEPE tested the key support at $0.000010 following the current bearish trend. Source: Cryptokijker on TradingView

The token has already dropped nearly 47% since rejecting the $0.000014 resistance level on January 18. At its current level of $0.000010, PEPE remains vulnerable to further declines, especially if it fails to hold above this psychological threshold.

Technical indicators reinforce the bearish case, with the Relative Strength Index (RSI) currently reading 32 and trending downward. While this is close to oversold territory, it still suggests ample room for further downward movement before a potential rebound.

Potential Crash or Recovery? Key Levels to Watch

If PEPE continues its downward trajectory and closes below $0.000010 on the daily chart, it could face a deeper 40% decline, potentially revisiting its August low of $0.0000063. This scenario would likely be driven by continued market skepticism and a lack of buying pressure.

PEPE price could hit critical support at $0.000007 amid the overall bearish sentiment in the meme coin market. Source: 3Commas on TradingView

However, a break above the 0.236 Fibonacci resistance level could flip the trend, potentially pushing PEPE toward $0.000020. On-chain data suggests that a major resistance zone exists between $0.000019 and $0.000021, where approximately 75 trillion PEPE tokens are held at a loss. If the price approaches this range, traders may attempt to break even, leading to increased selling pressure.

Watch Pepe Technical Analysis video Market Conditions Remain Uncertain

PEPE Coin’s recent volatility highlights the challenges meme coins face in sustaining upward momentum. While the broader crypto market has shown signs of recovery, PEPE remains under pressure due to increased liquidations and bearish sentiment.

Pepe (PEPE) price chart. Source: Brave New Coin

For a sustainable uptrend to occur, PEPE would need to attract significant buying interest and regain key resistance levels. Until then, the meme coin faces an uncertain path, with traders bracing for potential further declines or a surprising rebound fueled by speculative interest.

As the crypto market continues to evolve, all eyes will be on PEPE’s price action to determine whether the recent dip is a temporary setback or the start of a prolonged downtrend.