Emily Walker
An analyst on the social media platform X has pointed out a key support level for PEPE, as the popular meme coin experiences a substantial decline from its recent peaks. The analyst observed that historically, PEPE has typically seen an approximate 64% drop following local highs. Currently, it is undergoing a correction that has brought PEPE close to this retracement level, putting it in a critical position where maintaining support may influence whether it consolidates and begins to rise again or descends further.
Understanding PEPE’s 64% Drawdown History
Data from CoinGecko indicates that PEPE is currently down about 67.3% from its peak price of $0.00002803, which was achieved on December 9, 2024. The recent slump has worsened with a sharp 25.3% drop in just the last day, largely due to a broader decline in the cryptocurrency market.
An analyst on platform X noted a repeating trend in PEPE’s price behavior, emphasizing that after each local peak, the meme coin historically undergoes an average decline of around 64% before stabilizing and recovering. This pattern appears consistently on the weekly candlestick charts, highlighting a cycle of sharp downturns followed by recoveries.
The first significant retracement was observed between March and April 2024, when PEPE fell by 63.75% after hitting a record high of $0.000010003. This sharp decline eventually paved the way for a strong recovery, allowing PEPE to achieve new peaks. A similar decline occurred between May and July 2024, where the meme coin experienced a 66% decrease before regaining traction and reaching its highest value in December.
The analyst pointed out that these downturn periods following new highs have consistently been supported by the 50 EMA indicator. Currently, PEPE is trading at this EMA, and maintaining this position is essential to prevent a deeper decline. If the price stays above this level, it could signal the start of a recovery, whereas a drop below might intensify selling pressure.
What Lies Ahead for PEPE’s Price?
The overall cryptocurrency market cap has decreased by about 10% in the last day, creating a negative atmosphere for PEPE. This widespread market downturn heightens the risk of PEPE falling below its 50-week EMA. Recent weekly candlestick data reveals a potential slip below this vital support level, and ongoing bearish pressure could further reinforce this trend if selling continues across the market.
As of now, PEPE is priced at $0.000009279, while the 50-week EMA is around $0.000011. This indicates that the meme coin has already declined approximately 15% below this support. Nonetheless, the outlook is not entirely negative. With the heightened market volatility in the last 24 hours, a swift recovery could enable PEPE to bounce back along with other crypto assets and retest resistance at $0.00001313.