Once soaring to $0.00002828 in December 2024, the popular meme coin has since plummeted 65%, now hovering around $0.0000091. Despite the steep decline, experts believe a decisive breakout could reignite bullish momentum and propel PEPE toward fresh all-time highs.

Key Resistance Levels and Bullish Patterns

Technical indicators present a mixed outlook for PEPE. A death cross—in which the 50-day moving average falls under the 200-day moving average—has corroborated a downtrend. The PEPE also has been under the important 61.8% Fibonacci retracement level at $0.000011, adding to the strength of the resistance area.

A strong breakout above $0.000012 could trigger a rapid 150% surge toward $0.000025. Source: MyCryptoParadise on TradingView

However, there are some positive signals. Analysts are citing a falling wedge chart pattern, a technical pattern that in the past has preceded breakouts. If PEPE is able to break strongly above its resistance at $0.000012, it would set off a swift 150% increase with targets at $0.000025. It is in line with past trends where meme tokens have bounced strongly after deep corrections.

Declining Trading Activity and Market Sentiment

The drop in PEPE’s value has coincided with reduced market participation. With open interest in futures and outstanding futures contracts having fallen from $556 million in January to $258 million here, it would appear that speculative trading has been declining. That, however, does not appear to spook long-term owners. The holders of PEPE have risen from 384,000 to 404,100 over the past month, an assurance of committed investors who are convinced.

Pepe Coin (PEPE) open interest and trading volume have been declining consistently. Source: Santiment

Recently, price action for PEPE has seen substantial volatility. Volume surged 164% to $983 million in early February before declining to $482 million, suggesting that these whales can be positioning themselves ahead of the next big move.

Broader Market Influence and Investor Sentiment

PEPE’s price action is still closely correlated with the overall crypto market. The major assets such as Bitcoin and Ethereum have been consolidating, with investors awaiting definitive signs of the next significant trend. If these major cryptocurrencies break higher, it would boost sentiment throughout the entire sector, including meme coins such as PEPE.

The resistance at $0.000015 remains a key challenge for Pepe Coin price. Source: TheHunters_Company on TradingView

In addition, trading on decentralized exchanges (DEXs) has fallen on networks like Ethereum, Solana, and Base. This decline indicates a short-term decrease in aggregate market liquidity and trader risk appetite. Nevertheless, previous market cycles have shown that meme coins bounce back quickly during uptrends, and PEPE’s next steps are therefore important for investors.

Can PEPE Reclaim Its Former Highs?

While a $1 PEPE price remains a distant goal, the meme coin still holds substantial upside potential if it can reclaim critical technical levels. Short-term traders remain cautious, but whales accumulating PEPE could indicate confidence in a future breakout.

Pepe Coin (PEPE) was trading at around $0.000010, up 6.26% in the last 24 hours at press time. Source: Brave New Coin

Watch – Pepe Price Prediction Video

Whether PEPE can sustain a rally depends on breaking resistance at $0.000012 and maintaining momentum above that level. If successful, the token could embark on a strong recovery, providing traders and investors with a fresh opportunity to capitalize on its next major move.