What happened? PEPE dumped about 30% in October but is now showing signs of accumulation and a possible reversal.
The frog-themed meme token lost roughly $1.3 billion in market value during October, deepening its drawdown to over 74% from the December 2024 peak. Analysts and chartists say PEPE has re-entered a key accumulation zone and bounced off the lower band of a descending channel, which can attract smart-money buyers. If it reclaims critical resistance, models suggest a 40% snapback is possible and a breakout could lead to much bigger rallies.
Who does this affect? PEPE holders, traders, whales, and investors in related meme projects like PEPENODE are the most exposed.
Retail investors who bought near the highs have taken the biggest losses and are most sensitive to any recovery or further decline. Whales and momentum traders are reportedly eyeing specific lower ranges to accumulate, which could concentrate buying power if they move in. Investors in presale meme projects and small-cap altcoins stand to benefit from renewed interest if PEPE leads a sector-wide bounce.
Why does this matter? A PEPE reversal could spark a broader meme-coin rally and shift market flows back into riskier crypto assets.
If PEPE breaks out and draws momentum buyers, capital could flow into other meme coins and presales, lifting market caps and trading volumes across the sector. That rotation would boost short-term sentiment, drive listings and possible 10x–100x upside for some early-stage projects, and attract more retail attention. Conversely, failure to reclaim resistance would likely pull sentiment lower, reducing liquidity and keeping pressure on speculative tokens.