PEPE Faces 15% Downside Risk as Trading Volumes and On-Chain Activity Plunge

Meme-inspired cryptocurrency $PEPE $PEPE$0.0₅9608 is under pressure after slipping below a key support level, sparking warnings of a possible 15% drop.

The move comes as trading volumes fell to $980 million and open interest contracted 4% to $535 million based on CoinGlass data, signaling waning conviction among traders.

Derivatives data show long liquidations hit $326,000, far outpacing just $9,900 in shorts, based on the same data source, highlighting an imbalance that could accelerate downward momentum.

Meanwhile, activity on the $PEPE network has collapsed to fewer than 3,000 daily active addresses, Glassnode data shows. That’s a sharp drop from late 2024, when a peak 27,500 addresses were active during a major price rally.

According to trader Alpha Crypto Signal, the price of $PEPE could see a major breakdown and slow towards the $0.0000085 to $0.0000080 area as it comes off of a symmetrical triangle.

Meanwhile, Nansen data for the past week shows the top 100 $PEPE addresses on the Ethereum blockchain added just 0.2% to their holdings, while $PEPE on exchanges rose 1.13%.

Technical Analysis Overview

$PEPE showed volatility during the latest trading cycle, with a 5% range between $0.000010028 at the high and $0.000009567 at the low, according to CoinDesk Research's technical analysis data model.

A rally earlier in the week briefly pushed prices to the $0.000010000 mark on volume of 2.6 trillion tokens, but the move stalled and sellers regained control.

Since then, the token has drifted lower, testing $0.000009610, a 4% pullback from recent highs. Hourly trading also showed resistance forming near $0.000009640 despite sharp volume spikes above 89 billion, suggesting distribution rather than accumulation.