The PEPE meme coin is under intense bearish pressure as investor confidence wanes and major holders offload significant portions of their holdings. With nearly $1 billion wiped off PEPE’s total holdings in early 2025 and a recent whale liquidation of 85 billion tokens, the market is bracing for further downside. Despite short-term technical signals suggesting a potential rebound, the broader sentiment remains pessimistic.
This article dives into the latest price movements, whale activity, and on-chain data to assess whether PEPE can recover or if deeper losses are on the horizon.
PEPE Price Drops 10.85% Amid Market-Wide Correction
Over the past 24 hours, PEPE has declined by 10.85%, breaking below the critical psychological level of $0.000020**. The drop has pushed its market capitalization down to **$7.6 billion, reflecting weakening demand and growing fear among investors.
With total crypto market liquidations approaching $500 million in the same period, risk-off sentiment has spread across altcoins — and meme tokens like PEPE are especially vulnerable. The sharp correction has triggered a cascade of stop-losses and margin calls, amplifying downward momentum.
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Technical Analysis: Bearish Momentum With Hints of Reversal
On the 4-hour chart, PEPE shows signs of an aggressive correction. The price failed to break through the 61.8% Fibonacci retracement level at $0.00002120, a key resistance zone that often signals trend continuation or reversal.
After this rejection, the price plunged into a crucial supply zone around $0.000017, breaking below both the 50 EMA and 200 EMA — a formation commonly known as a "death cross." This technical pattern typically indicates strong bearish momentum and often precedes extended downtrends.
However, there are early signs of exhaustion in the selling pressure:
- The Relative Strength Index (RSI) is showing bullish divergence, meaning price made a lower low while RSI formed a higher low.
- Momentum is beginning to resurface from the oversold territory (below 30), suggesting short-term buying interest may emerge.
If bullish momentum builds, PEPE could attempt a bounce toward the 50% Fibonacci level at $0.00001969 — a key resistance that would need to be reclaimed for any sustained recovery.
On the other hand, if bears maintain control and price closes below the 23.6% Fibonacci level at $0.00001670**, the next major support lies at **$0.0000144 — representing an 18% drop from current levels.
Key Price Levels to Watch:
- Immediate Resistance: $0.00001969 (50% Fib)
- Breakout Zone: $0.00002120 (61.8% Fib)
- Support Level 1: $0.00001670 (23.6% Fib)
- Support Level 2: $0.0000144 (next major floor)
Whale Sells 85 Billion PEPE Tokens at a Loss
A major red flag emerged when a large PEPE holder — commonly referred to as a "whale" — liquidated 85 billion tokens for 1.5 million USDC, locking in substantial losses.
Despite holding onto 180.8 billion tokens worth approximately $3.2 million**, this single transaction resulted in a **total loss of $1.74 million. The move highlights growing pessimism even among long-term holders who may have entered during earlier rallies.
Whale behavior is often seen as a leading indicator in crypto markets. When large investors begin selling at a loss, it typically signals diminishing conviction in future price appreciation.
Such actions can trigger copycat selling from smaller investors, further accelerating downward trends — especially in highly speculative assets like meme coins.
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PEPE Holdings Drop by Nearly $1 Billion in Early 2025
One of the most concerning developments is the dramatic decline in PEPE’s balance across various holder tiers:
- Total holdings dropped from $8.41 billion to $7.5 billion in just nine days — a loss of nearly $910 million.
- Holdings above $10 million** fell from **$5.8 billion to $5.09 billion.
- Mid-tier investors with balances between $1 billion and $10 billion saw their value shrink from $1.2 billion to $1.13 billion.
- Most telling: small-to-mid whales holding $100,000 to $1 million worth of PEPE pulled out over $81 million**, with holdings falling from **$716.71 million to $635.63 million.
This broad-based withdrawal across multiple investor segments suggests declining confidence not just among mega-holders but also among active traders and mid-level speculators.
When both large and medium-sized investors reduce exposure simultaneously, it often foreshadows prolonged bearish phases — particularly in low-utility tokens driven primarily by hype and speculation.
Why Is Confidence in PEPE Fading?
Several factors contribute to the erosion of trust in PEPE:
- Lack of Fundamental Utility: Unlike some meme coins that evolve into platforms with staking, governance, or NFT integrations, PEPE remains largely speculative with no core use case.
- High Volatility: Meme coins are inherently volatile, but PEPE’s extreme swings make it risky for long-term holding.
- Market Saturation: New meme tokens launch daily, diverting attention and capital away from older projects like PEPE.
- Macroeconomic Pressure: Broader crypto market uncertainty due to regulatory scrutiny and macroeconomic tightening has reduced risk appetite.
These dynamics make PEPE highly susceptible to sentiment shifts — and right now, sentiment is turning negative.
Frequently Asked Questions (FAQ)
What caused the recent PEPE price drop?
The decline was triggered by a combination of market-wide liquidations, failure to break key resistance levels, and large-scale whale selling. Loss of confidence among mid-tier holders also contributed significantly.
How much did PEPE holdings fall in early 2025?
Total PEPE holdings in USD terms dropped from $8.41 billion to $7.5 billion — a decrease of approximately $910 million — within just nine days.
Is there a chance for PEPE to rebound?
Yes, short-term technical indicators like RSI bullish divergence suggest a possible bounce toward $0.00001969. However, sustained recovery depends on regaining momentum above $0.00002120 and stabilizing investor sentiment.
What happens if PEPE drops below $0.00001670?
A close below $0.00001670 (the 23.6% Fibonacci level) could trigger further selling, with the next target at $0.0000144 — an 18% drop from current levels.
Why are whales selling PEPE at a loss?
Whales may be cutting losses due to deteriorating market conditions, reduced confidence in future gains, or portfolio rebalancing amid increased volatility.
Should I buy PEPE now?
Investing in highly speculative assets like PEPE carries significant risk. While short-term rebounds are possible, long-term value depends on renewed community interest and broader market recovery.
Final Outlook: Caution Ahead for PEPE
While fleeting signs of bullish divergence offer hope for a short-term rally, the overall picture for PEPE remains bearish. The combination of massive holdings decline, whale exits, and technical breakdowns paints a grim outlook.
For now, traders should monitor key levels closely:
- A successful reclamation of $0.00001969 could spark a relief rally.
- A breakdown below $0.00001670** opens the door to an 18% fall toward **$0.0000144.
Until there's evidence of strong buying pressure or fundamental catalysts, caution is advised.
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Core Keywords:
- PEPE price analysis
- PEPE whale activity
- PEPE holdings drop
- Meme coin crash
- Crypto liquidation
- Bearish momentum
- RSI bullish divergence
- Fibonacci retracement
Note: This article does not constitute financial advice. Always conduct your own research and consult with a qualified advisor before making investment decisions.