PEPE Plunge: Meme Coin’s 30% Drop Sparks ’Buy the Dip’ Frenzy – But Is This a Trap?

Frogs are falling. PEPE’s price just cratered to $0.00000421—down 30% from last week’s ATH—as meme coin traders scramble for discounted bags.

Blood in the water? The RSI screams oversold at 28, while whale wallets quietly accumulate 2.3 trillion PEPE in the past 48 hours. Classic ’smart money’ play—or another case of degenerates chasing vapor?

Technical outlook: That 200-day MA at $0.00000395 could trigger a dead cat bounce... if Bitcoin stops impersonating a rollercoaster. Meanwhile, ’fundamental analysts’ (read: Twitter gamblers) cite ’strong community’ as the investment thesis. Because that worked so well for Luna.

Bottom line: This could be the dip before the next 5x pump—or the knife that catches speculators mid-air. Either way, some hedge fund VP just liquidated his kid’s college fund to ape in. Godspeed.

How deep could this PEPE retracement go?

Source: PEPE/USDT on TradingView

The range formation, highlighted in purple, extended from $0.0000127 to $0.0000148. The mid-range level was at $0.0000138. PEPE had slipped below this support in recent hours.

The RSI on the 4-hour chart also reflected a shift in momentum recently.

It fell below the neutral 50 level, an early indication that sellers were taking the upper hand. However, the OBV remained static NEAR the local highs. This was because of the low trading volume over the past three days.

Hence, even though PEPE might witness a dip, the selling pressure was not overwhelming. The price dip was instead a product of the wider market sentiment, as well as a MOVE towards liquidity.

Source: Coinalyze

The Open Interest, like the OBV, has been flat over the past four days. It reflected a lack of speculative interest in the memecoin.

Yet, the Funding Rate remained positive. It appeared that Futures traders were unwilling to enter new positions, but short-selling was not popular either.

Source: CoinGlass

The 1-week liquidation map also gave valuable clues. It underlined the $0.0000124-$0.0000127 area as a nearby liquidity pocket. These levels were just below the short-term range plotted earlier.

Therefore, it was highly likely that PEPE would present a deviation below the range in the next few hours. Such a dip would likely be a buying opportunity.

Traders taking long positions should manage their risk and position size wisely, knowing that a bullish reversal was not guaranteed.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion