Pepe [PEPE], the popular meme coin, has been at the center of significant market turbulence over the past 40 days, losing an alarming $7 billion in market cap. Once valued at $12 billion, the memecoin’s market cap has now plummeted to $5.24 billion. This sharp decline has reportedly raised concerns about its future, with many traders questioning its long-term viability.
As of January 30, 2025, PEPE traded at $0.00001274, down 1.07% on the day, and continues to face heavy selling pressure. Large sell-offs, especially from a major Pepe whale, have added to the market’s uncertainty, further pushing the price downward. Despite the bleak outlook, some traders believe that this price level could present a buying opportunity if the market manages to stabilize.
Whale Sell-offs and Weak Technicals Add to Pressure
A significant contributor to PEPE’s current downfall is the large exit by a major whale, who sold off 552.92 billion PEPE for $6.92 million in USD Coin (USDC). The whale had previously traded 1.48 trillion PEPE, securing a $3.42 million profit, which likely added to the volatility and bearish sentiment.
On top of the whale’s exit, technical indicators show that Pepe is in a bearish trend. The descending wedge pattern, a bearish signal, has led to further price declines, particularly after the loss of the $0.00001687 demand zone. The Williams Alligator indicator confirms the trend, showing that the price is likely to continue falling, with the blue, red, and green moving averages trending downward at $0.00001625, $0.00001516, and $0.00001416, respectively.
However, according to TradingView, the Relative Strength Index (RSI) sits at 34.32, suggesting that the coin might be oversold. This could trigger a short-term bounce if buyers step in at these levels.
On-Chain Metrics Show Weak Fundamentals, But Hope Remains
The on-chain data for Pepe is also showing bearish signals. The Net Network Growth is at 1.69%, reflecting slow adoption, while the In the Money metric is -3.43%, indicating that most holders are currently in a loss position. Despite these negative metrics, one positive sign is the increase in large transactions by 2.50%, hinting at continued institutional interest, even as the price declines.
The Market Value to Realized Value (MVRV) ratio also suggests limited upside potential. The long/short differencehas dropped to 10.45%, marking one of its lowest points in months. This indicates that traders are unwilling to hold Pepe coin for the long term, which increases the risk of more short-term sell-offs. If the MVRV ratio stabilizes, however, it could signal a potential price reversal.
Crypto analyst Erastus Chami commented,
“Despite the significant drop in price, the increase in large transactions shows that some investors may still be betting on a potential rebound.”
Can PEPE Make a Strong Comeback?
Despite the bearish market conditions, some traders are still hopeful for a short-term recovery. If the price holds at $0.00001274 and buyers defend the critical $0.00001687 support zone, PEPE could recover temporarily. The oversold RSI and the slight uptick in large transactions are seen by some as indicators that a rebound could be near.
However, the road ahead looks challenging for Pepe. The overall market sentiment remains negative, with whale sell-offs, weak fundamentals, and a declining market cap keeping downward pressure on the price. If PEPE fails to reclaim the $0.00001687 zone, further downside could be expected before any significant recovery happens.
Conclusion: What’s Next for PEPE After Market Cap Loss?
Pepe market cap has taken a significant hit, losing $7 billion over the last 40 days. The whale sell-offs, combined with weak technicals and bearish on-chain metrics, have made for a turbulent period for the memecoin. While there is a possibility of a short-term recovery due to oversold conditions, the market’s overall outlook remains uncertain.
For now, the next move for PEPE will depend on whether buyers can step in to defend the current support levels and prevent further declines. Investors should proceed with caution and monitor market conditions closely. Keep following Turkishnyradio and keep an eye on Market cap.
FAQs
- Why did PEPE’s market cap drop by $7 billion?
PEPE’s market cap dropped largely due to whale sell-offs, bearish technical indicators, and weak on-chain metrics, signaling declining investor confidence.
- Can Pepe recover from its current decline?
There is a possibility of a short-term bounce due to oversold conditions, but PEPE’s long-term recovery depends on whether buyers can step in and defend key support levels.
- What are the key support levels for PEPE?
The critical support level for PEPE is $0.00001687. If the price breaks below this zone, further downside is expected.
- Should investors buy Pepe now?
Investors should be cautious. While there is a possibility of a short-term recovery, the overall market sentiment remains negative. Monitoring market trends and technical indicators is recommended before making any investment decisions.
