Meme-inspired cryptocurrency PEPE (PEPE) is under pressure after slipping below a key support level, sparking warnings of a possible 15% drop.

The move comes as trading volumes fell to $980 million and open interest contracted 4% to $535 million based on CoinGlass data, signaling waning conviction among traders.

Derivatives data show long liquidations hit $326,000, far outpacing just $9,900 in shorts, based on the same data source, highlighting an imbalance that could accelerate downward momentum.

Meanwhile, activity on the PEPE network has collapsed to fewer than 3,000 daily active addresses, Glassnode data shows. That’s a sharp drop from late 2024, when a peak 27,500 addresses were active during a major price rally.

According to trader Alpha Crypto Signal, the price of PEPE could see a major breakdown and slow towards the $0.0000085 to $0.0000080 area as it comes off of a symmetrical triangle.

Meanwhile, Nansen data for the past week shows the top 100 PEPE addresses on the Ethereum blockchain added just 0.2% to their holdings, while PEPE on exchanges rose 1.13%.

Technical Analysis Overview

PEPE showed volatility during the latest trading cycle, with a 5% range between $0.000010028 at the high and $0.000009567 at the low, according to CoinDesk Research’s technical analysis data model.

A rally earlier in the week briefly pushed prices to the $0.000010000 mark on volume of 2.6 trillion tokens, but the move stalled and sellers regained control.

Since then, the token has drifted lower, testing $0.000009610, a 4% pullback from recent highs. Hourly trading also showed resistance forming near $0.000009640 despite sharp volume spikes above 89 billion, suggesting distribution rather than accumulation.