Pepe Coin (PEPE) Dips 60% From ATH: Time to Buy the Dip?

Pepe Coin (PEPE), a meme-based cryptocurrency, has faced significant turbulence since reaching its all-time high (ATH) of $0.00002825 in December 2024. Can the frog recover?

Currently trading at approximately $0.000013, PEPE has experienced a sharp 60% drop from its peak, leaving many investors questioning if this is an opportunity to buy the dip or if further declines are imminent.

Pepe Coin Market Overview and Technical Indicators

Some investors are considering the 60% price decline as an opportunity to buy PEPE in the dip. Source: BowTiedlguana via X

Pepe Coin has been on a downward trajectory, losing 20% of its value in the past week alone. Despite this, some analysts suggest that PEPE could be setting the stage for a bullish reversal. The 30-day Market Value to Realized Value (MVRV) ratio has recently dipped into a potential buying zone, which historically signals a price rebound. Analyst MaxPain points out that previous instances of MVRV entering this zone have led to significant price surges, with rallies of 72%, 71%, and 51% in the past.

PEPE price could retest the $0.000010 level following Pepe coin’s ongoing bearish momentum. Source: Wizzardo on TradingView

The current market conditions, with a turbulent crypto space and wider bearish trends, have sparked increasing accumulation in PEPE by non-exchange wallets. According to data from Santiment, the amount of PEPE held on exchanges has sunk. That would mean weakened selling pressure and would point to long-term buying and holding rather than trading on exchanges—a precursor, probably, to a strong upward price spike in the market.

Accumulation and Bullish Sentiment for Pepe

Further evidence of a potential rebound lies in the accumulation phase that Pepe Coin appears to be entering. A reduction in tokens held on exchanges and an increase in holdings by large non-exchange wallets point to growing investor confidence. Historically, such patterns have preceded price increases, as reduced supply on exchanges means less potential for sell-offs.

Pepe coin price could rebound for a bullish move targeting the $0.000030 level if PEPE can hold above the $0.000012 support. Source: VIPRose on TradingView

Additionally, technical analysis shows that PEPE’s price has returned to a crucial demand zone, where it has found support in the past. The key resistance level lies above $0.00000150, and it would confirm a new uptrend if the PEPE manages to reclaim it. On the downside, the inability to hold the support around $0.00000120 could open more risks to the downside.

Is PEPE a Good Buy Now?

The question among potential investors is whether now is a good time to buy Pepe coin. The recent decline in the price of PEPE could indeed mean this is a good time to buy, especially given accumulation and potential bullish signs from both MVRV and market activity. While it is quite hard to predict meme coins like PEPE; they have been resilient in the past and have often moved on social media hype or investor sentiment.

PEPE has the potential to rebound for a bullish trend despite the ongoing price correction. Source: Habeebee via X

Pepe’s upcoming halving event, scheduled for February 4, is expected to reduce mining rewards by 50%, which could introduce scarcity into the market and spur renewed buying activity.

Future Outlook for Pepe Coin

Looking ahead, Pepe Coin’s long-term viability depends heavily on continued support from the meme coin community and broader investor interest. Despite its lack of utility compared to more established cryptocurrencies, Pepe has managed to carve out a niche in the meme coin space, remaining a top contender among tokens like Dogecoin (DOGE) and Shiba Inu (SHIB).

Pepe (PEPE) price chart. Source:Brave New Coin

As 2025 progresses, the outlook for PEPE will likely be influenced by external factors such as regulatory developments, including those related to cryptocurrency in the United States under the leadership of former President Donald Trump. His support for digital assets could help bolster meme coin markets like PEPE, even without specific hype surrounding the token itself.

However, PEPE faces competition from new meme coins that could siphon investor interest. The influx of new projects could overshadow PEPE unless it maintains its appeal and market presence. A key factor to watch will be the token’s ability to retain momentum and market awareness amid the ever-evolving landscape of meme coins.

Looking Forward: A Risky But Potentially Rewarding Investment in Pepecoin

Pepe Coin’s dramatic decline from its ATH offers both challenges and opportunities. For investors looking to capitalize on the potential for a rebound, the current low price, combined with positive accumulation trends, could signal a promising entry point. However, as with all meme coins, PEPE’s price remains highly speculative and subject to rapid shifts in market sentiment. Investors should carefully consider their risk tolerance and stay informed about developments that could affect the broader cryptocurrency market.

Ultimately, whether PEPE will reclaim its former heights or fade into obscurity will depend on how well it navigates these challenges and capitalizes on the next wave of interest. For those willing to embrace the volatility, Pepe Coin may still have room to grow, but caution is advised.