- $PEPE corrected 10.2% in 24 hours after recent local highs, showing traders’ caution post-capitulation.
- Analysts expect short-term consolidation before a new impulsive rally forms in coming months.
- Liquidity remains strong with over $650M daily trading volume despite price weakness.
$PEPE faces renewed market pressure following recent capitulation, declining over 10% in 24 hours. Analysts observe that despite short-term weakness, broader structural signals and liquidity conditions indicate a potential foundation for long-term recovery and stability.
Market Environment and Macro Structure
The market is still in the process of overcoming the uncertainty as the $PEPE is traded at around below $0.0000064543 after a local peak at $0.00000723. This decline is symptomatic of profit-taking and risk-aversion since liquidity is realigning throughout the larger crypto industry. Despite this, the token’s $2.71 billion market capitalization places it among the leading meme coins, just behind $DOGE and $SHIB.
Analyst Chris McCrypto noted that the challenge of timing remains evident this cycle. Based on his assessment, the market sits between two scenarios — a potential bear market entry or an extended bullish phase. He leans toward an extension, citing prolonged macro cycles, elevated Bitcoin dominance, and an approaching end to quantitative tightening.
The macro picture is still inclined towards risk-on. Etherium (ETH) has been a prime structural position, reversing key resistance to support on longer periods. This is a favorable trend to the larger market climate, indicating that meme-based assets such as $PEPE might be able to recover as soon as liquidity flows back into the large cryptocurrencies.
Technical Setup and Structural Analysis
Recent capitulation has redefined $PEPE’s wave structure. What was previously labeled as Wave 2 has been invalidated, shifting the chart toward a developing C wave within an ABC correction originating from the December 2024 all-time high. The trend would be part of a larger five-wave count, which indicated that the corrective phase might be discharged.
The chart also shows a parabolic curve that develops over one of the accumulation areas, in which buyers seem to be recapturing the grounds between $0.0000063 and $0.0000065. Sustained trading within this range suggests early base formation. Analysts expect 2–4 weeks of consolidation before the next impulsive sequence begins.
Trading volume adds further insight into current sentiment. With $654.6 million in 24-hour trading activity, liquidity remains strong. Such conditions typically emerge near short-term lows, indicating that volatility is attracting renewed participation.
Outlook and Market Positioning
McCrypto anticipates continued short-term fluctuations but maintains a constructive view for 2026. If price maintains stability above current levels and avoids a Head and Shoulders breakdown, $PEPE could enter a new bullish expansion targeting valuations near $50 billion, comparable to $DOGE’s 2021 performance.
$PEPE’s fully diluted valuation equals its circulating supply of $420.69 trillion tokens. This fixed supply structure eliminates dilution risks common among altcoins, creating a clearer long-term valuation model. Strong community interest and consistent trading volume continue to support its position as a dominant meme asset of this cycle.
Market data suggests this phase resembles consolidation rather than breakdown. The correction, paired with steady liquidity and defined supply metrics, reflects a natural cooling period following months of expansion. As global liquidity conditions improve, $PEPE remains positioned to participate in the next broader wave of market recovery.
