Pepe (PEPE) has become one of the most talked-about meme coins in the crypto market. Despite its humorous origins, it captured investor attention by reaching an all-time high of $0.000028 in December 2025. That surge placed it among the meme coins with massive followings and significant trading volumes.
However, as is often the case with meme-driven assets, Pepe soon found itself in a prolonged downtrend. It formed a descending channel on the daily chart and saw its price consistently decline. Eventually, it tested a critical support level at $0.00000673, where it found enough buying pressure to break out of the descending channel.
Now, Pepe is retracing from its recent bounce and heading back to retest this same support zone. The entire crypto community is watching this retest closely because it could decide whether Pepe recovers and resumes an upward trend or sinks even lower, reinforcing the bearish narrative that has dominated for months.
In this article, we will dive into Pepe’s technical chart patterns, analyze possible outcomes for the retest, and identify the next significant support and resistance levels. We will also explore on-chain metrics—such as whale holdings and addresses by time held—to understand how they might influence price action in the near future.
The Descending Channel and Breakout
Formation of the Downtrend
Pepe’s descent from $0.000028 in December 2025 was not a sudden collapse but rather a steady drift downward, punctuated by failed recovery attempts. The coin established a series of lower highs and lower lows, the hallmark of a downtrend. On the daily chart, two downward-sloping trendlines enclosed the price action, creating a descending channel that provided a visual representation of Pepe’s weakening momentum.
Traders often watch descending channels for breakouts because, once a coin breaches the upper boundary, it can signal that sellers are losing control. In Pepe’s case, the breakout above $0.00000673 was significant because it suggested that buyers had finally mustered enough strength to challenge the entrenched bearish sentiment. The market reaction was swift, with Pepe experiencing a short-lived rally that temporarily lifted it above the channel.
The Role of $0.00000673 Support
Why was $0.00000673 so important? This price zone had served as a key support level on multiple occasions, offering a floor where buyers stepped in to absorb selling pressure.
When Pepe broke below higher support levels earlier in the year, traders naturally looked to $0.00000673 as the last line of defense before the coin risked exploring new lows. The fact that Pepe managed to hold here and break out of the descending channel was a strong technical signal.
However, breakouts are never guaranteed to hold, especially in a market as volatile as cryptocurrencies. The price is now retracing, which is typical behavior as traders lock in profits and the market tests the validity of the breakout.
If Pepe can successfully retest $0.00000673 and bounce higher, it would confirm that this zone has turned from resistance into support, paving the way for a potential trend reversal.
Retest Scenarios: What Happens Next?
Scenario 1: Retest Holds and Pepe Moves Higher
If the retest at $0.00000673 proves successful, Pepe could see a renewed wave of buying pressure. A bounce from this support level would indicate that bulls are defending their positions and that the recent breakout is more than just a fleeting rally. In technical analysis, a successful retest of a former resistance line or channel boundary often precedes an extended uptrend.
Should Pepe rebound off $0.00000673, the next logical resistance level to watch is near $0.00000800. This region has acted as both support and resistance in the past, making it a likely magnet for price action. A convincing move above $0.00000800 would further solidify the bullish case and could propel Pepe toward $0.00000900 or even $0.00001000, depending on broader market sentiment and the volume behind the move.
It is important to note that meme coins can experience rapid shifts in sentiment, often driven by social media hype or influencer endorsements. If positive buzz around Pepe resurfaces, it may intensify any technical bounce. Traders who enter at the retest may look to take partial profits near $0.00000800 while leaving a portion of their position open in case Pepe continues to climb.
Scenario 2: Retest Fails and Pepe Breaks Support
On the other hand, if Pepe fails to hold $0.00000673, it would imply that the recent breakout was a false move or a “bull trap.” In this scenario, sellers would regain control, pushing the price back into or below the descending channel. This breakdown would likely trigger stop-loss orders placed by traders who bought the breakout, adding further downward pressure.
If $0.00000673 is breached convincingly, the next support level might lie closer to $0.00000600. In fact, because of Pepe’s limited historical price structure below $0.00000673, the coin could experience rapid declines if panic sets in. This environment often leads to heightened volatility, as market participants rush to either exit positions or capitalize on short-selling opportunities.
A breakdown would likely confirm that the overall downtrend remains intact, and it could embolden bears to target even lower levels. However, meme coins have a knack for defying expectations. Even in a breakdown scenario, a sudden surge of interest or a viral social media campaign can cause a sharp reversal. Nonetheless, from a purely technical standpoint, losing $0.00000673 would be a bearish development that signals the market is not ready for a sustained recovery.
Understanding the On-Chain Metrics
Total Holders and Market Cap
Pepe’s on-chain analytics reveal a community of 412.27K holders and a market cap hovering around $2.9 billion. These figures highlight the coin’s substantial following, especially for a meme coin. A large holder base often translates into increased liquidity and trading activity, but it can also mean that the price is more susceptible to shifts in retail sentiment.
Moreover, a market cap of $2.9 billion positions Pepe among some of the more prominent altcoins. This status can attract institutional interest, though meme coins rarely see the same level of institutional adoption as utility-focused projects. Nonetheless, the higher the market cap, the more stability a coin can exhibit—assuming that trading volume remains robust.
Addresses by Holdings: Who Owns Pepe?
- $0 – $1k: 89.84%
- $1k – $100k: 9.87%
- $100k+: 0.29%
This breakdown indicates that the vast majority of Pepe holders have relatively small balances. In other words, the coin is heavily dominated by retail investors. While this wide distribution can be beneficial in some respects—spreading out selling pressure—it can also lead to heightened volatility. Retail traders are more likely to be influenced by fear and hype, which can result in dramatic price swings when sentiment changes.
The 0.29% of addresses that hold $100k+ worth of Pepe represent a small but potentially influential group. These wallets could be whales, institutions, or early adopters. If these large holders choose to sell, the market could experience swift price declines. Conversely, if they accumulate more Pepe, it can signal confidence and spark a rally.
Whale Holdings and Their Influence
Pepe’s whale holdings stand at 47.31% of the total circulating supply. This is a significant figure because it means that less than half of the supply is in the hands of smaller investors. When whales control such a large portion of a token, they can substantially impact price movements. A single whale deciding to liquidate or accumulate can cause a cascade effect, as other participants react to the sudden shift in order flow.
Whale behavior can also provide insights into market sentiment. If data shows whales increasing their positions during a downtrend, it might indicate that they believe the price is undervalued and are positioning for a rebound. On the flip side, if whales begin distributing their holdings near key support levels, it could signal an expectation of further downside.
Addresses by Time Held: Cruisers, Traders, and Holders
- Cruisers (66.49%): These addresses hold Pepe for a moderate period, often riding medium-term trends and seeking swing trading opportunities.
- Traders (7.21%): These addresses frequently move in and out of positions, contributing to short-term price volatility.
- Holders (26.30%): These addresses commit to Pepe for the long haul, possibly due to strong conviction in the meme coin’s brand or potential future adoption.
The distribution between cruisers, traders, and holders can affect how Pepe responds to market events. If cruisers and traders collectively decide to sell upon a breakdown of $0.00000673, the price could drop sharply, especially if volume spikes. Conversely, if the majority of holders remain steadfast and whales are not selling, the price might stabilize, even in the face of short-term volatility.
Broader Market Context
Pepe’s fate is not determined solely by its chart and on-chain metrics. The broader crypto market sentiment often plays a crucial role. If Bitcoin and other major altcoins enter a bullish phase, meme coins like Pepe can benefit from the overall risk-on environment. Retail investors, flush with gains from larger assets, might rotate into smaller or more speculative plays. Conversely, if macroeconomic conditions deteriorate or if the crypto market experiences a widespread downturn, meme coins tend to feel the brunt of the sell-off first.
Regulatory news and social media trends can also have outsized effects on meme coins. A single tweet from a celebrity or influential figure can spark a flurry of buying or selling activity. Therefore, traders and investors should keep an eye on news headlines, Twitter, Reddit, and other platforms where retail sentiment can shift rapidly.
Trading Strategies Around the Retest
Bullish Strategy: Buy the Retest
A common approach for those leaning bullish is to wait for a confirmation that $0.00000673 holds as support. This could come in the form of a bullish candlestick pattern, a volume spike, or positive divergence on indicators like the RSI or MACD. Once confirmation appears, traders might open a long position with a stop-loss just below $0.00000673. The reward-to-risk ratio can be favorable if the price targets the next resistance around $0.00000800 or beyond.
Bearish Strategy: Short the Breakdown
Traders with a bearish outlook might wait to see if Pepe breaks below $0.00000673. If volume surges during a breakdown, indicating strong selling pressure, a short position could be opened with a stop-loss above the breakdown level. The next support around $0.00000600 might be the initial target, but if the downtrend intensifies, the trade could aim for even lower levels.
Risk Management and Emotional Discipline
Meme coins are notoriously volatile, and Pepe is no exception. Traders should employ strict risk management, setting stop-loss orders to limit potential losses. Emotional discipline is equally important; it is easy to get swept up in hype or fear, but successful trading often requires sticking to a well-defined plan. If the market moves against you, honoring your stop-loss can prevent a small loss from becoming a catastrophic one.
Final Words
Pepe’s journey from $0.000028 down to the $0.00000673 support level has been a textbook illustration of a descending channel in action. The breakout above this critical price zone offered hope that the coin might finally escape its long downtrend. However, the market is now at a crossroads as Pepe retraces to retest $0.00000673. The outcome of this retest could set the tone for the weeks ahead.
If the support holds, Pepe may rally toward $0.00000800, potentially targeting higher levels if momentum and social media interest align. If the support fails, Pepe risks sliding back into a bearish pattern, with the next support near $0.00000600. On-chain metrics paint a picture of a token heavily influenced by whales, with retail investors making up the bulk of the address count but not necessarily holding the largest share of the supply.
The interplay between cruisers, traders, and long-term holders will also shape Pepe’s trajectory. A sudden surge of selling from cruisers or traders could overwhelm the market if the retest fails. Conversely, if whales accumulate and holders remain steadfast, Pepe could stabilize or even see a swift rebound.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Always conduct thorough research and consult with financial professionals before making investment decisions.
