- Pepe’s market cap has plunged by $7 billion, with price action showing sustained bearish pressure.
- On-chain metrics remained weak, but oversold RSI and increasing large transactions hinted at a possible rebound.
A major Pepe [PEPE] whale has exited its position, selling 552.92B PEPE for $6.92M USD Coin [USDC], adding to growing market uncertainty.
The whale had previously traded 1.48T PEPE, securing a $3.42M profit, but such large liquidations often trigger volatility and bearish sentiment.
At press time, Pepe traded at $0.00001274, down 1.07% on the day, struggling to hold key support levels. As the memecoin faces heightened selling pressure, can the market absorb this move, or is more downside ahead?
PEPE market cap plunges by nearly $7 billion
Pepe has suffered a massive decline, losing $7 billion in market cap over the last 40 days. A few months ago, its valuation stood at $12 billion, but it has now dropped to $5.24 billion, reflecting reduced investor confidence.
This sharp decline has fueled concerns over its long-term sustainability. However, some traders believe the current price range presents a prime accumulation opportunity ahead of the next altcoin and memecoin rally.
Price action remains bearish but oversold
Pepe’s breakdown below a descending wedge pattern has intensified selling pressure, with the loss of the $0.00001687 demand zone further weakening its structure.
Additionally, the Williams Alligator indicator confirms a bearish crossover, with the blue, red, and green moving averages trending downward at $0.00001625, $0.00001516, and $0.00001416, respectively.
However, the RSI sits at 34.32, suggesting oversold conditions that could trigger a short-term bounce. If buyers step in, a temporary recovery may occur.
Source: TradingView
On-chain data reveals weakening fundamentals
The on-chain metrics remain mostly bearish, reflecting a struggling network. Net network growth is at 1.69% (bearish), indicating slowed adoption. Additionally, the “In the Money” metric is -3.43% (bearish), meaning more holders are at a loss.
Whale concentration remains low at 0.71% (bearish), showing declining accumulation. However, large transactions have increased by 2.50% (bullish), hinting at continued institutional activity despite the price downturn.
Source: IntoTheBlock
MVRV long/short difference suggests limited upside potential
The MVRV long/short difference has dropped to 10.45%, marking one of its lowest points in months. This decline suggests that traders are unwilling to hold PEPE for extended periods, increasing short-term selling risks.
Additionally, continued declines in profitability may lead to more liquidation events. However, if MVRV stabilizes, it could indicate a potential price reversal in the near term.
Therefore, Pepe’s next move will depend on whether demand outweighs current selling pressure.
Source: Santiment
Is a recovery possible?
Pepe’s market outlook remains decisively bearish, with whale sell-offs, weak fundamentals, and a declining market cap fueling downward momentum.
Read Pepe’s [PEPE] Price Prediction 2025–2026
However, RSI levels suggest that a short-term relief rally could occur if buyers defend current levels. If bulls reclaim the $0.00001687 zone, Pepe may stabilize and recover.
Otherwise, further downside is expected before any significant rebound materializes.
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