The frog‑inspired memecoin PEPE has slumped to its weakest level in months, trading as low as $0.00000386 on January 31 — its lowest point since December 2025. The drop leaves PEPE more than 85% below its all‑time high, underscoring the severity of the recent crypto market downturn.
At press time, PEPE trades at $0.000004193, down 16% in the past 24 hours. Analysts note that the $0.0000040 zone is acting as a temporary support, holding off further selling pressure. Whether this level can sustain demand remains uncertain, with traders watching closely for signs of volume returning.
Macro and Geopolitical Drivers
PEPE’s decline is part of a broader collapse across digital assets. Heavy liquidation events and risk‑off sentiment have driven investors to unwind speculative positions, with some rotating into traditional hedges such as silver. Macro and geopolitical factors have amplified the sell‑off.
In Washington, reports that Kevin Warsh — considered one of the most hawkish candidates — could be tapped as the next Federal Reserve chair have rattled markets. A hawkish Fed leadership would likely mean tighter monetary policy, dampening appetite for risk assets like cryptocurrencies. At the same time, a weakening U.S. dollar has added complexity, prompting investors to reduce exposure to volatile positions and seek stability elsewhere.
Outlook
For PEPE, the $2,200 equivalent zone in ETH terms has been compared to a last line of defense for buyers. If demand returns, the memecoin could bounce back above support and stabilize. If not, a decisive break below $0.0000040 risks opening the door to deeper losses under $0.0000038.
The next few sessions will determine whether PEPE can hold its ground or slide further in line with the broader market correction.
