PEPE’s 48% Crash Sends It To Yearly Lows, But It’s Far From Over

Overview

PEPE has experienced a significant decline, plunging nearly half of its value in a two-week period, marking a new yearly low for the meme coin. This downturn reflects broader bearish trends in the crypto market, particularly among meme coins, and raises questions about the future trajectory of PEPE.

PEPE’s Price Movement

In early February, PEPE entered a corrective phase characterized by a sharp selloff that resulted in a 48% decrease in its value. This decline aligns with a technical analysis shared by an analyst on X, indicating that PEPE has now reached its yearly low zone. The price action observed since the beginning of the year indicates a complete reversal of the brief rally that occurred earlier, leading to speculation about whether PEPE is still undergoing distribution or if it is setting the stage for a potential new phase.

Full Reversal to Yearly Lows

PEPE’s trading pattern mirrors the broader bearish momentum seen in the cryptocurrency market, particularly among meme coins that have predominantly followed a downtrend. Since May 2025, PEPE has consistently recorded lower highs and lower lows. An analyst noted that PEPE has now completed a full reversal toward its yearly low, effectively unwinding the gains made during the initial weeks of 2026.

The analyst’s previous insights, shared on January 5, highlighted concerns about the early-year rally’s characteristics, which suggested manipulation. The price had surged sharply from the yearly open, but there were no lower wicks across multiple timeframes, indicating a lack of genuine buying pressure. This absence of quality accumulation confirmations at the bottom subsequently led to a rapid downside movement.

Current Market Conditions

Currently, PEPE is trading at a value that has rebounded slightly from an intraday low, but it remains vulnerable. The recent decline did not happen impulsively; instead, it followed a measured corrective path that adhered to previously established higher-timeframe targets. However, the analyst cautioned that meeting bearish targets does not guarantee an immediate bullish response.

From a structural perspective, while PEPE’s price movements have aligned with expectations, there are no signs of accumulation or sustained demand at current levels. This indicates a potential need for patience among investors, as further consolidation or increased volatility may be necessary before a more favorable market structure can emerge.

From author

The current state of PEPE exemplifies the challenges faced by meme coins in a bearish market. The lack of accumulation signals suggests that investors should remain cautious, as the market dynamics could continue to evolve in unpredictable ways. Observing how PEPE reacts in the coming weeks will be critical for understanding its future potential.

Impact on the crypto market

• PEPE’s significant decline highlights the vulnerability of meme coins in a bearish market environment.
• The absence of accumulation signals indicates a lack of confidence among investors, potentially leading to further declines.
• The wider implications of PEPE’s performance may affect sentiment towards other meme coins and similar assets.
• The technical analysis surrounding PEPE’s price movements may influence traders’ strategies across the crypto market.
• Continued volatility in PEPE could lead to increased caution among investors, affecting overall market liquidity.