PEPE May Extend Bearish Trend Despite Bitcoin’s Recent Gains

• PEPE open interest falls from $121.5 million to $114.5 million since December 20, indicating fading trader confidence.

• Bearish structure break from the $0.000044-$0.000050 supply zone reinforces downward momentum.

• RSI at 40 and declining Accumulation/Distribution line highlight sustained selling pressure, with no bullish reversal in sight.

Discover why PEPE price is dropping despite Bitcoin’s bounce. Analyze bearish trends, key levels, and trader strategies for the memecoin market in 2025. Stay informed on crypto volatility—read the full analysis now.

What is causing the PEPE price to trend downward?

PEPE price has been under pressure, shedding 2% in the last 24 hours and plummeting nearly 21% from its December peak. This decline persists even as Bitcoin recovered 5% from $85,500 to $89,700 between Friday and Monday. Technical data from Coinalyze reveals dwindling open interest, dropping from $121.5 million on December 20 to $114.5 million, alongside sideways price action that underscores bearish sentiment among PEPE holders.

Source: Coinalyze

Recent reports, including analysis from market observers earlier this month, confirm the long-term PEPE bearish trend, with no contradicting evidence emerging. Traders monitoring the memecoin should focus on key indicators to navigate the ongoing volatility in the cryptocurrency space.

How are technical indicators confirming PEPE’s bearish momentum?

On the 1-day chart, PEPE experienced a bearish structure break on December 17, originating from the $0.000044 to $0.000050 supply zone. This zone, marked by consistent rejection in prior attempts, now acts as overhead resistance, with any retest likely leading to further downside. The Relative Strength Index (RSI) hovers at 40, a level that favors bears and indicates waning buying momentum. Supporting this, the Accumulation/Distribution (A/D) line has been in a steady decline since early November, reflecting uninterrupted selling pressure across the market.

Source: PEPE/USDT on TradingView

Shifting to shorter timeframes, the 1-hour chart paints an equally concerning picture. A clear bearish structure persists, with the RSI tilting further into negative territory. The A/D line’s week-long slump emphasizes that sellers remain dominant, showing no signs of exhaustion. Data from TradingView highlights how these metrics align with broader market caution toward memecoins like PEPE, which often amplify Bitcoin’s movements but decoupled negatively this time. Experts from platforms like Coinalyze note that such divergences can prolong downturns, with open interest contraction signaling reduced liquidity and heightened risk for bullish positions.

Source: PEPE/USDT on TradingView

In the context of the cryptocurrency market, PEPE’s performance underscores the volatility inherent in memecoins. While Bitcoin’s rebound provided a brief market lift, PEPE traders witnessed no spillover effect, as volume and momentum indicators remained subdued. This separation highlights how sentiment-driven assets like PEPE can face unique pressures, independent of major cryptocurrencies. Financial analysts emphasize monitoring these disconnects, as they often precede extended corrections. With open interest at $114.5 million, the market’s lack of bullish conviction is evident, and traders are advised to prioritize risk management amid these conditions.

Frequently Asked Questions

Why hasn’t Bitcoin’s recent bounce helped PEPE price recover?

Bitcoin’s 5% rise from $85,500 to $89,700 failed to lift PEPE due to underlying bearish factors like declining open interest and technical breakdowns. Coinalyze data shows PEPE’s market sentiment decoupled, with selling pressure dominating since December, preventing any meaningful rebound in the memecoin’s value over the past 24 hours.

What resistance levels should PEPE traders watch in the short term?

For voice search queries on PEPE’s outlook, key short-term resistance levels include $0.0000420 for potential bounces, followed by Fibonacci retracements at $0.0000452 and $0.0000476 from the recent swing. These areas, based on TradingView charts, are likely to attract selling if tested, given the prevailing bearish structure and RSI readings below 50.

Key Takeaways

• Persistent Bearish Pressure: PEPE’s 2% daily drop and 21% monthly decline reflect strong selling, unaffected by Bitcoin’s uptick.
• Technical Confirmation: RSI at 40 and falling A/D line on multiple timeframes signal no immediate reversal, with open interest shrinking to $114.5 million.
• Trader Strategy: Monitor $0.0000420 for sell opportunities; prepare for further downside unless support flips to resistance.

Conclusion

In summary, the PEPE price continues to exhibit a bearish trend amid declining open interest and technical breakdowns from key supply zones, as evidenced by data from Coinalyze and TradingView. Despite Bitcoin’s modest recovery, PEPE’s decoupling highlights the risks in memecoin trading. As market conditions evolve, staying vigilant with these indicators will be crucial for informed decisions—consider reviewing broader crypto trends to position accordingly in the coming weeks.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion