PEPE Tests Critical Support Zone Amid Bitcoin-Induced Market Turbulence

PEPE, the meme-inspired cryptocurrency, plunged nearly 12% in the past 24 hours, dropping to $0.00000517 as Bitcoin's sharp decline below $95,000 triggered over $1 billion in market-wide liquidations. This selloff caused PEPE to lose its key support level at $0.00000520, accelerating bearish momentum and raising the risk of further declines.

Technical indicators reflect weakening demand, with the RSI at 46.9 indicating neutral-to-bearish momentum, and the MACD showing mixed signals without a clear trend resolution. Trading volume surged over 80% to $548 million, highlighting capitulation pressure rather than accumulation. If bearish sentiment persists, the next major support levels are $0.00000490 and $0.00000460, areas that previously attracted buyer interest during October's market volatility.

Despite the downturn, some analysts note that PEPE has returned to a strong historical demand zone on the weekly chart. Analyst Steph Is Crypto emphasized that this zone has served as the foundation for every major PEPE rally since early 2024, and a bounce from here could potentially fuel a 388% surge, targeting levels near $0.00001000 or higher. However, if this support fails, it could invalidate the bullish structure and lead to a deeper pullback.

Recovery prospects hinge on PEPE reclaiming $0.00000540 and broader market stability, particularly Bitcoin's ability to hold key supports. Memecoins like PEPE remain highly sensitive to Bitcoin's price movements, and without a sustained reversal in market sentiment, volatility is expected to continue.