PEPE Drops 40% in Monthly Decline as Bitcoin Correction Triggers Meme Coin Selloff
Lawrence Jengar Oct 17, 2025 21:36
PEPE trading at $0.00 down 1.9% daily amid broader 40% monthly decline following Bitcoin's drop below $65,000 and weakening investor confidence in altcoin markets.
Quick Take
• PEPE trading at $0.00 (down 1.9% in 24h) • 40% monthly decline accelerated by Bitcoin correction below $65,000 • RSI at 31.61 signals oversold conditions but momentum remains bearish • Broader altcoin weakness continues as institutional confidence wanes
Market Events Driving Pepe Price Movement
The most significant catalyst impacting PEPE price this week has been the cascading effect of Bitcoin's decline below the critical $65,000 threshold on October 14th. This breakdown triggered a corrective phase across major altcoins, with PEPE bearing the brunt of the selling pressure alongside other meme tokens.
Market analysts note that PEPE's 40% monthly decline reflects the broader market downturn that began intensifying in mid-October. The selloff has been particularly severe for speculative assets like meme coins, as investors rotate toward safer havens during periods of uncertainty. Trading volumes on Binance spot market reached $94.1 million in the past 24 hours, indicating sustained selling interest despite oversold technical conditions.
The absence of positive fundamental catalysts has left PEPE price vulnerable to broader market sentiment. Unlike previous cycles where meme coin rallies were supported by social media momentum or celebrity endorsements, the current environment reflects a more risk-averse institutional approach to cryptocurrency allocations.
PEPE Technical Analysis: Oversold But Still Declining
Price Action Context
PEPE price action reveals a clear breakdown from previous support structures, with the token trading well below all major moving averages. The sustained decline has pushed PEPE toward the lower end of its recent trading range, while volume patterns suggest continued distribution rather than accumulation at these levels.
Bitcoin's correlation remains strong during this decline, with PEPE following the broader cryptocurrency market lower without showing signs of independent strength. The Binance spot market data confirms that institutional interest remains minimal, as evidenced by the lack of significant buying support during the recent oversold readings.
Key Technical Indicators
The RSI reading of 31.61 places PEPE in oversold territory, but momentum indicators suggest the selling pressure hasn't fully exhausted. The MACD histogram shows continued bearish momentum, while the stochastic oscillators at 52.24/%K and 54.56/%D indicate potential for further downside before any meaningful reversal attempt.
Pepe technical analysis reveals a Bollinger Bands %B position of 0.1318, confirming the token's proximity to the lower band support. However, oversold conditions alone rarely provide sufficient buying impetus in the current market environment.
Critical Price Levels for Pepe Traders
Immediate Levels (24-48 hours)
• Resistance: Previous support levels now acting as overhead resistance • Support: Lower Bollinger Band providing temporary technical floor
Breakout/Breakdown Scenarios
A breakdown below current support levels could accelerate the decline toward the 52-week low, potentially triggering additional stop-loss selling from remaining long positions. Conversely, any recovery attempt would need to reclaim the 20-day moving average to signal a potential trend change.
Upside targets remain limited until Bitcoin stabilizes above $65,000, providing the broader market foundation necessary for altcoin recovery.
PEPE Correlation Analysis
• Bitcoin: PEPE maintaining high correlation with Bitcoin's bearish momentum, following the leading cryptocurrency's decline without showing defensive characteristics • Traditional markets: Limited direct correlation to S&P 500 movements, though general risk-off sentiment in equity markets contributes to cryptocurrency weakness • Sector peers: PEPE underperforming relative to other major altcoins, reflecting the particular vulnerability of meme tokens during market corrections
Trading Outlook: Pepe Near-Term Prospects
Bullish Case
Recovery potential exists if Bitcoin stabilizes above $65,000 and broader market sentiment improves. PEPE's oversold RSI reading could provide technical bounce opportunity, though sustainable recovery requires renewed retail interest in meme tokens.
Target levels for any relief rally would focus on reclaiming the 20-day moving average as initial resistance.
Bearish Case
Continued Bitcoin weakness below $65,000 poses significant downside risk for PEPE price. The 40% monthly decline could extend further if institutional selling pressure persists across the altcoin sector.
Downside levels to monitor include the 52-week low and psychological support zones identified in previous market cycles.
Risk Management
Current volatility suggests conservative position sizing for any new entries. Stop-loss levels should account for the elevated daily ATR and potential for gap moves during low-liquidity periods.
Short-term traders should monitor Bitcoin's price action closely, as PEPE technical analysis indicates continued sensitivity to broader market leadership from the primary cryptocurrency.
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