Pepe Coin (PEPE) Market Value Drops by $6B as the Token Loses 65% of Its Value

Pepe coin, the popular meme token in the cryptocurrency market, has experienced a steep decline in its market value over the past two months.

Pepe coin, the popular meme token, has seen a steep decline in market value over the past two months. Its market cap has fallen from $10 billion to $3.84 billion, a loss of over $6 billion since December 2024.

The token's price has dropped by 65%, from a December high of $0.00002828 to its current value of $0.000010. At press time, the token was trading down 6.26% in the last 24 hours at $0.0000091.

Trading activity data reveals changing investor behavior during this period. Futures open interest, which measures outstanding futures contracts, has decreased from $556 million in January to $258 million, indicating a slowdown in speculative trading activity around the token.

Holder data, on the other hand, presents a contrasting picture. According to CoinCarp statistics, the number of Pepe token holders has increased from 384,000 to 404,100 over the past thirty days. This trend suggests that while short-term traders may be selling their positions, long-term holders are maintaining their investments.

Technical Analysis: Pepe's price movement is showing mixed signals when analyzed technically. The formation of a death cross, where the 50-day moving average falls below the 200-day moving average, usually indicates a bearish outlook. The token has also fallen below the 61.8% Fibonacci level of $0.000011, which technical analysts interpret as a sign of continuing bearish control.

If the downward trend continues, market observers have identified $0.0000058 as a potential support level. This price point was last seen in August 2024 and could serve as a key level to watch for traders and investors.

However, not all technical indicators point downward. A falling wedge trendline convergence has begun to form, which traditionally signals a potential bullish breakout. If Pepe manages to overcome key resistance levels, analysts suggest a recovery to $0.000025 is possible, which would represent a 150% increase from current prices.

The broader cryptocurrency market context plays a crucial role in Pepe's price movement. Major cryptocurrencies like Bitcoin and Ethereum have been in a consolidation phase in recent weeks. Any breakout in these larger cryptocurrencies could influence sentiment across the entire market, including meme tokens like Pepe.

DEX Activity: Activity on decentralized exchanges has shown a decline across multiple blockchain networks, including Ethereum, Solana, and Base. This reduction in trading activity suggests current market conditions feature lower liquidity and reduced trader appetite for high-risk assets.

Past market cycles have shown that meme coins can experience strong recoveries during bullish periods. This historical pattern suggests the possibility of a price recovery for Pepe if overall market sentiment improves.

The token's ability to maintain support levels will play a key role in its short-term price movement. Market participants are closely watching these levels for signs of either stabilization or further decline.

Different types of market participants are showing varying responses, with some short-term traders reducing their exposure while others maintain their positions, creating a complex market dynamic.

Recent price action has tested several technical levels, with the token showing both weakness and resilience at different points.