Pepe Meme Coin Shows Signs of Stabilization, Yet Market Technicals Suggest Caution for 2025

The meme coin landscape has faced considerable headwinds so far this year, with broad-based sell-offs dampening sentiment across the sector. As traders prepare for potential market rotations, attention has turned toward understanding which assets might lead recovery efforts versus which face prolonged pressure.

Technical Landscape for Pepe (PEPE)

Pepe (PEPE) continues to work through a challenging correction phase since late September when price action printed a lower high on daily timeframes. The asset currently trades in a depressed range, having struggled to regain upward momentum despite multiple attempts.

Market microstructure indicators paint a mixed picture. The Chaikin Money Flow (CMF) displays ongoing sell-side pressure, though it has begun stabilizing near neutral territory. Moving averages remain tilted downward, reflecting the prevailing bearish bias across recent candles. However, momentum oscillators have recently registered a bullish crossover on the Stochastic RSI—a development traders monitor closely as a potential early warning for temporary relief bounces.

Liquidation analysis reveals an interesting dynamic. Short positions have accumulated significantly in overhead resistance clusters, particularly concentrated around $0.0000050–$0.0000055 price levels. If spot prices extend toward these liquidation zones, analysts estimate this could trigger a 12% to 15% bounce as the market recalibrates from oversold extremes. Extended moves toward $0.000006–$0.0000066 remain possible if buying momentum accelerates, though current structure suggests such relief would likely represent distribution opportunities rather than sustained trend reversals.

Market Context and Trader Positioning

The underlying downtrend structure remains intact despite these near-term positive technical signals. For traders seeking exposure to meme coins during this consolidation phase, the risk-reward calculus has become less favorable for long-term holds compared to earlier cycle phases.

Recovery scenarios for Pepe would require breaking above sustained resistance levels and establishing fresh higher highs on the daily timeframe—a development that hasn’t materialized since late September. Until that technical shift occurs, the dominant narrative remains one of downside pressure punctuated by tactical relief bounces.

The broader meme coin category continues to present traders with mixed signals: some assets show early signs of accumulation, while others like Pepe remain trapped in corrective ranges. How this dispersion plays out through Q1 2025 will likely determine which subsegments attract capital next.