PEPE continues to trend downwards with a 21% price drop this week. Key support at POC could decide short-term direction. Geopolitical tensions between Israel and Iran are driving risk-off sentiment in memecoins.

Pepe (PEPE), the wildly popular Ethereum memecoin, has once again found itself at the centre of market volatility as traders confront a renewed wave of bearish pressure.

Despite its meme status and vibrant community support, the token has entered a critical technical zone following a series of steep daily losses that raise pressing questions about its short-term prospects.

PEPE has posted a sharp 21% weekly correction, confirming a lower low on the weekly chart and cementing its place in a broader bearish structure that has been developing over several weeks.

After failing to reclaim its value area high, the token faced an aggressive rejection at the key 0.618 Fibonacci retracement level, which triggered a swift sell-off that erased earlier gains and pushed price action further into negative territory.

With each failed attempt to recover key levels, the token has continued to print lower highs and lower lows, a pattern that strongly signals bearish continuation under current conditions.

This sequence of breakdowns reflects not only waning technical momentum but also growing risk aversion among traders, particularly in the high-beta memecoin segment.

The market’s next focal point is the point of control (POC), a zone that combines the 0.786 Fibonacci retracement with historically high trading volume and a long-standing monthly support level.

As PEPE approaches this critical level, market watchers are keenly observing whether buyers will step in with enough conviction to halt the decline and engineer a bounce.

If price finds stability at the POC with sufficient volume support, a short-term reversal may emerge, offering the potential for a structural shift in the trend and a retest of prior resistance zones.

However, should this support fail, the door will open to further downside, possibly leading to a full rotation toward the value area low, a level that could mark a deeper correction phase.

The importance of the POC cannot be overstated, as it represents a decisive battleground between bulls and bears in the current cycle.

Beyond technical indicators, recent geopolitical events have dramatically worsened the outlook for speculative assets like PEPE, as traders react sharply to escalating conflict in the Middle East.

The ongoing military escalation between Iran and Israel, including massive missile exchanges and direct assaults on key infrastructure, has shaken global markets and prompted a risk-off shift that has particularly impacted memecoins.

PEPE, along with other notable meme assets like FLOKI and WIF, has led the market losses, with PEPE alone plunging over 4% within 24 hours, according to Coingecko, as investor sentiment deteriorated.

Notably, memecoins are typically the first to suffer in such scenarios due to their highly speculative nature and the absence of strong fundamental backing.

Whale activity further illustrates this vulnerability, with PEPE’s whale netflow collapsing by a staggering 97%, indicating large holders are distributing rather than accumulating.

Even positive developments, such as FLOKI’s 15 billion token burn, failed to buoy sentiment as traders used the news as an opportunity to exit rather than buy.

While some market observers believe PEPE’s pullback remains within historical volatility norms, the ongoing risk-off environment and weak technical structure point to continued caution in the near term.

In addition, the broader macroeconomic triggers, such as the upcoming FOMC decision, could play a decisive role in shaping short-term price action across crypto markets, including memecoins.

Until then, the fate of PEPE hinges on whether the point of control can hold firm, allowing price action to stabilise and reverse the current trajectory.

If the POC fails, the memecoin’s bearish trend is likely to deepen, with heightened volatility and further losses remaining a strong possibility.

For traders, the coming days will be pivotal in determining whether PEPE can defy the odds and reclaim lost ground or continue spiralling toward lower support zones.

The post PEPE price prediction: can the memecoin break from the bear trend? appeared first on CoinJournal.

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