On July 5, 2025, the currency $PEPE experienced a sharp decline of about 5–15%, raising concerns of a real 'collapse.'
Here are my followers and investors in the PEPE currency, presenting the main reasons — based on the experience of traders and financial institutions.
1. Macro market pressures (Macro factors)
The cryptocurrency market saw a decline today — major currencies like Bitcoin lost 4%, putting pressure on marginal currencies like PEPE as well.
A state of global uncertainty (e.g., due to geopolitical tensions or economic decisions like interest rates) weighs down highly volatile assets.
2. Profit-taking among investors
When PEPE prices rose, about 68% of the label providers were 'out of profit,' prompting them to sell to secure gains.
In my area, a dense 'Supply Zone' appeared at 0.000021–024, which is surrounded by significant repeated selling.
3. 'Whale' movements – large investors
A massive whale transferred 609 billion PEPE (about 6.4 million dollars) to an exchange, which was seen as a signal for a large exit from the market.
Such movements create an impression of intent for mass selling and stimulate enthusiasm among small traders for quick sales.
4. Temporary negative technical patterns
Daily charts form bearish signals such as:
Bearish wedge pattern
Breaking through important support (50-SMA or Fibonacci 0.618).
Indicators like RSI and MACD reflect weakness in buying momentum and predict further declines.
5. The nature of 'Meme Coin' and its high volatility
The price support network relies on speculation and general sentiment (social momentum). If enthusiasm wanes, the price collapses as it did with #PEPE .
There is no real support like tech projects or stable income — hence the rapid decline is not surprising.
These are the main reasons for the currency's decline, and I hope I have been helpful.