Pepe (PEPE) has continued its steep decline, falling 75% this year and dropping a further 19% over the past week, making it one of the weakest major meme coins in 2025. The sell-off comes as expectations for a U.S. interest rate cut fade, reducing appetite for higher-risk assets.
Data from the CME Group’s FedWatch survey shows the probability of a December rate cut falling sharply from 91% to 45%. The shift has weighed heavily on speculative cryptocurrencies, with meme coins among the hardest hit.
Pepe has broken below a key support level at $0.0000055 and is now trading within a descending price channel. Analysts warn the token could fall toward the $0.0000035 level, which would mark an additional drop of nearly 30% if selling pressure continues.
Technical indicators show the Relative Strength Index at 32, near oversold territory. While this increases the chance of a short-term bounce, analysts say Pepe would need to climb back above $0.0000050 to signal any meaningful recovery.
Pepe’s decline contrasts with the relative stability of Dogecoin and Shiba Inu, which have held stronger positions during the recent downturn. At the same time, a new project called Pepenode has attracted investor attention with a presale promoting a new model for mining meme coins.
