Pepe's Price Drops 7.307% Amid Broader Crypto Market Caution

Pepe's latest price was $0.00001155, down 7.307% in the last 24 hours. The cryptocurrency has been gaining significant attention from traders recently, with the outstanding amount of futures contracts, a metric known as open interest, reaching an all-time high. This surge in interest has solidified Pepe's position as the third most valuable meme coin, with a market cap that is significantly higher than its nearest competitor, Official Trump.

Ask Aime: How does Pepe's market cap compare to Official Trump's?

Despite the recent rally, there are signs of fatigue emerging in the broader crypto market. Major cryptocurrencies are showing early signs of profit-taking, and traders are seeking rotation and macroeconomic cues. This has led to a cautious approach from traders, who are locking in gains as several cryptocurrencies linger near local resistance levels.

Ask Aime: What's behind Pepe's rapid decline after hitting a new high?

Pepe's recent price action has seen it fall below its 200-day Simple Moving Average, a commonly followed technical indicator used by traders to judge long-term trend strength. If the selling pressure persists, the next line of defense is the 50-day SMA. A decline below this level could indicate trouble for the frog-themed meme coin, as it risks "adding a zero" to its price, implying that a further slide could push the coin from the sixth decimal place to the seventh.

If the price falls further from the daily SMA 50, Pepe may test support at the June 5 low. If this support is lost, Pepe might return to its previous range, which spanned late January through early May. After a period of sharp retracement, the Pepe price is stabilizing near the region, a level that has proven to be a short-term demand zone on multiple timeframes.

Despite the recent pullback from the high, Pepe remains structurally intact above key trendline support and the lower bounds of a broader consolidation channel. The price action over the past few sessions has shown a clean rejection from the resistance level, which coincides with the upper band of the 4-hour Bollinger channel. Price has since drifted back toward the mid-range support near the region.

This area also aligns with a prior breakout zone and remains protected by the 100 and 200 EMA bands between the region. Despite the near-term weakness, the broader uptrend remains intact as long as Pepe holds above the support shelf. The daily chart shows a strong bounce from the swing low, and the trendline from late May remains unbroken.

The Fib retracement from the all-time high to the yearly low shows price currently hovering near the 0.382 level, suggesting this dip could serve as a mid-range consolidation before another breakout. Momentum indicators are beginning to flash early recovery signals. The 30-minute RSI is climbing from near-oversold territory, while the MACD histogram is starting to flatten with bullish cross potential emerging.

Pepe price volatility has compressed significantly, and this tightening often precedes a directional move. Stochastic RSI on the 30-minute and 4-hour charts has also reset, now crossing upwards from the 20 zone, hinting at a potential bullish reversal if buying pressure increases. However, the Ichimoku Cloud shows price below the Kumo, with resistance visible at the region.

A clear break and hold above this cloud barrier would confirm a bullish shift in short-term sentiment. The current decline in the Pepe price can be attributed to technical resistance near the region and broader market hesitation following Ethereum’s slowdown. The rejection from the upper trendline resistance on the 4-hour chart, coupled with weak momentum on MACD and RSI indicators earlier in the week, led to a pullback.

However, the Pepe price update suggests the selling pressure is losing steam as price defends higher lows on the daily structure. There is also limited volume accompanying the drop, indicating that this is likely a healthy retracement rather than a reversal. The short-term outlook remains cautiously bullish if Pepe maintains support above the region.

A reclaim of the region and a successful breakout past the region would likely pave the way for a retest of the region, followed by the May high near the region. On the downside, failure to hold the region could expose the region, and deeper support lies near the region. If the broader crypto market remains stable, Pepe could resume its climb by mid-week, especially if the RSI and MACD continue their recovery and the Ichimoku cloud flips bullish.