The meme coin PEPE is currently navigating a pivotal phase in its market trajectory, with analysts suggesting its recent price movements are strategically designed to liquidate bearish positions rather than signal immediate bullish expansion. Investors are urged to exercise caution and patience as the market undergoes strategic corrections.
Unpacking PEPE's "Reversal Move"
Crypto analyst "The Composite Trader" asserts that PEPE's explosive bullish expansion at the start of the current year was not built for longevity. Labeling the surge as "manipulative," the analyst indicated it was primarily aimed at capturing buy-side liquidity without genuine underlying demand. This strategic move preceded a significant market correction, seeing PEPE plummet nearly 50% from its late-2025 peaks within a descending channel. A subsequent short-lived rally, following a "Break of Structure" at a lower price point, was identified as a further liquidity hunt, rather than signaling an immediate recovery or sustained upward trend.
PEPE's Intertwined Fate with Bitcoin's Volatility
PEPE has already corrected by approximately 33.21% from its earlier gains this year, a move consistent with the expectation of a challenging yearly open and confirmation of broader market downturns. Echoing this bearish outlook, crypto analyst Davie Satoshi forecasts that PEPE's price could decline even further if Bitcoin (BTC) experiences drops to $85,000 and subsequently $75,000. This prediction underscores a critical link between PEPE's performance and Bitcoin's stability, with the latter's fluctuations directly influencing the meme coin's trajectory.
Patience: The Investor's Best Play Amidst Uncertainty
Despite the prevailing bearish indicators, Satoshi foresees an eventual rebound for PEPE, expecting it to sharply reverse and establish new support levels. For potential investors not currently holding PEPE, the advice is to "buy the dip." "The Composite Trader" reinforces the need for patience, emphasizing that true accumulation schemes and definitive bullish reversals for PEPE will only be confirmed "when the time is right." Until then, the market is anticipated to remain bearish, characterized by strategic price adjustments that demand a long-term perspective from traders and investors.
