PEPE -21.12% 24H Drop Amid Sharp Correction

On SEP 1 2025, PEPE dropped by 21.12% within 24 hours to reach $0.00000973, PEPE dropped by 744.37% within 7 days, dropped by 207.25% within 1 month, and dropped by 5265.53% within 1 year.

Technical indicators suggest a deep correction across multiple timeframes. The 50- and 200-day moving averages have both trended downward, with the 50-day line crossing below the 200-day line to form a bearish crossover. Relative Strength Index (RSI) readings hover near oversold territory, at 12.3, indicating potential for a short-term bounce or consolidation phase. However, given the magnitude of the recent selloff, the market appears to be in a medium-term downtrend.

Recent on-chain data reflects declining confidence in the asset. Wallet activity has dropped by nearly 40% over the past 30 days, and the number of active addresses has fallen from 1.8 million to 1.1 million. Meanwhile, large holders appear to be consolidating positions, with over 25% of the total supply held in wallets with 100 million tokens or more. This distribution suggests limited upside potential without a significant shift in investor sentiment or broader market conditions.

Analysts project that the ongoing bearish momentum could continue into the near term unless a major catalyst emerges to reverse the trend. Given the current technical and on-chain fundamentals, a continuation of the downward trajectory is viewed as the most probable scenario in the absence of unexpected macroeconomic or market-driven events.

Backtest Hypothesis

A backtesting strategy was recently analyzed to evaluate potential performance during past downturns. The approach focuses on using a combination of moving averages and RSI levels to identify potential entry and exit points. Specifically, the strategy employs a crossover system where a short-term moving average crosses above a long-term one as a bullish signal, combined with RSI crossing above 25 as a potential sign of oversold conditions. Conversely, bearish signals are triggered when the short-term moving average crosses below the long-term and RSI falls below 30, indicating a potential reversal point or continuation of a downtrend.

The backtesting results indicated that such a strategy could have captured a portion of the downward movement in earlier periods, though it also highlighted the risks of false signals during volatile phases. While it does not guarantee success in the current environment, it provides a structured framework for managing exposure during extended downturns.