Pepe coin price has been in freefall this year as fear intensified among many crypto investors. On Tuesday morning, the token plummeted to a low of $0.0000056, marking an 80% decrease from its all-time high. So, can this meme coin bounce back and retest its all-time high?
Why Pepe Coin Price Crashed
There are a few reasons why the price of Pepe has significantly decreased in the past few months. First, the coin dropped as a sense of fear emerged in the crypto industry. The fear and greed index has fallen from the extreme greed zone of 88 in 2024 to the extreme fear zone of 17. Crypto investors often stay on the sidelines when the index moves to the fear or extreme fear area.
Second, Pepe has plummeted due to the ongoing weakness in the meme coin industry. All meme coins, including popular names like Dogecoin and Shiba Inu, have plunged by more than 30% from their highest levels in 2025. This price action has mirrored that of other types of cryptocurrencies, including Solana and Cardano.
Third, Pepe’s price has fallen due to ongoing concerns about the American economy after Donald Trump imposed substantial tariffs on its top trading partners. As a result of these tariffs, the prices of most items are expected to rise by at least 25%, as importers will gradually increase prices over time.
There are concerns that the US may sink into a recession, which explains why the Dow Jones, Nasdaq 100, and S&P 500 indices have crashed in the past few weeks. On Monday, the Nasdaq 100 and Dow Jones indices plunged by 727 and 890 points, respectively.
Pepe Price Prediction: Can It Rebound?
The daily chart of the Pepe price reveals a significant decline from $0.00002840 in December to the current $0.0000057. The 50-day and 200-day moving averages have formed a death cross.
The Average Directional Index (ADX) has moved upwards to 36, its highest level since February 16. An ADX level above 36 indicates that the trend is strengthening. Furthermore, the Relative Strength Index (RSI) and the MACD indicators have both pointed downwards.
On the positive side, Pepe coin’s price has formed a falling wedge pattern, a popular bullish reversal sign. This pattern consists of two falling and converging trendlines, with a breakout occurring as they near their confluence.
Pepe’s price has fallen to the key support level at $0.0000058, coinciding with the lowest swing in August. Thus, the formation of a falling wedge supports a contrarian viewpoint on the Pepe coin.
Should this occur, the first key level to monitor would be $0.00001257, aligning with the 200-day moving average. A move above that level would suggest more gains. The key point to watch is the 50-day moving average at $0.000010, reflecting a 120% increase from the current level.
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