PEPE the Meme Coin Faces a Precarious Position as It Nears a Crucial Support Level

An analyst on social media platform X has highlighted a crucial support level for PEPE, as the meme coin faces a significant drawdown from its recent highs.

Meme coin PEPE has experienced a significant drawdown from its recent highs, attracting the attention of an analyst on social media platform X. Based on historical price trends, the analyst has highlighted a crucial support level for PEPE as it faces this downturn.

According to the analyst's observations, PEPE tends to experience an average drawdown of approximately 64% following each local peak, before stabilizing and resuming an upward trajectory. This pattern has recursively repeated on the weekly candlestick timeframe.

Price data from CoinGecko shows that PEPE is currently down by about 67.3% from its all-time high of $0.00002803, which it reached on December 9, 2024. Notably, the recent downturn also coincides with a sharp 25.3% drop in the past 24 hours, owing to the broader decline across the crypto market.

The first major retracement occurred between March and April 2024, where the asset declined by 63.75% after reaching an all-time high of $0.000010003. This correction, while severe, eventually led to a strong rebound, allowing PEPE to set new highs. A similar scenario unfolded between May and July 2024, when the meme coin suffered a 66% decline before regaining bullish momentum, ultimately pushing its price to its current all-time high in December.

As noted by the analyst, these periods of declines after reaching a new high have always been propped up by the 50 EMA indicator. At the time of writing, PEPE is now trading around this EMA, and its ability to maintain its position above it is crucial for avoiding a deeper decline. If the price holds at this level, it could mark the beginning of a recovery, whereas a strong breakdown below it might trigger further selling pressure.

The overall cryptocurrency market cap has declined by approximately 10% in the past 24 hours, contributing to a bearish sentiment surrounding PEPE. This widespread market downturn increases the risk of extending the meme coin’s breakdown below the 50-week exponential moving average (EMA). The latest weekly candlestick has already shown signs of slipping below this critical support level, and the prevailing bearish momentum could further solidify this move if selling pressure persists.

At the time of writing, PEPE is trading at $0.000009279, while the 50-week EMA sits around the $0.000011 mark. This indicates that the meme coin has already fallen approximately 15% below this support level. However, the situation is not entirely bad. Given the heightened volatility over the past 24 hours, a quick market recovery could see the meme coin rebounding alongside broader crypto assets and return to retesting resistance at $0.00001313.