- The Pepe coin price gave a major breakout from a multi-year resistance trendline of a falling wedge pattern, signaling an opportunity for bullish recovery.
- Fed Chair Jerome Powell warned of continued inflation risks from elevated oil prices.
- According to Coingecko, the top memecoins contribute to a market cap of $30.28 billion, registering a 9.3% intraday change.
The frog-themed memecoin, Pepe, tumbled 8.7% on Wednesday to reach $0.00000353. The sharp sell-off followed a broader market downtrend amid hawkish signals from the US Federal Reserve and escalating geopolitical tensions in the Middle East. As memecoins are highly volatile due to the dynamic changes in the market, the Pepe coin price reverts to a major key pivot level, signaling an opportunity for a major breakout.
Crypto Market Slides as Inflation Data Dampens Rate Cut Hopes
February’s U.S. Producer Price Index rose 0.7% compared to the previous month, beating the 0.3% consensus expectation among economists. The advance was the highest monthly gain in wholesale prices since the prior summer and continued a trend of sequential gains.
Services contributed to much of the upward pressure, although goods costs also contributed significantly. On a year-on-year basis, the headline value of the PPI picked up to 3.4%, the highest reading in twelve months, and the core measure (excluding food and energy) hit 3.9%.
Shortly after the release, the Federal Open Market Committee ended its March session by keeping the target range for the federal funds rate the same at 3.5%-3.75%. Fed Chair Jerome Powell, in a speech after the announcement, pointed to ongoing risks to price stability from high oil prices amid continued geopolitical tensions in the Middle East.
Updated projections from policymakers saw the median outlook for inflation in 2026 rise to 2.7%, up from the last estimate of 2.4%.
As a result, the Digital assets came under instant pressure downwards in this environment. According to coinmarketcap data, the total cryptocurrency market cap plunged from $2.6 trillion to around $2.45 trillion in the last 24-hours.
In the derivatives space, there was less positioning for PEPE futures. Open interest in PEPE contracts fell from $218m to $202m per Coinglass figures, about a 7.3% decrease.
This decline, along with price action, is often a signal of long liquidation or exhaustion in the prevailing down-move momentum.
Pepe Coin Price Hints Final Pullback Before Major Leap
On March 16th, the Pepe coin price gave a decisive breakout from the resistance trendline of a falling wedge pattern. Since December 2024, the coin price has resonated within the two converging trendlines of the pattern, indicating a prolonged correction trend.
Thus, the recent breakout suggests a major change in market dynamics, signalling an opportunity for renewed recovery potential. However, the post-breakout retest has pulled the Pepe coin price to $0.00000355 and is set to retest the breached trendline as potential support.
If the buyers defend this floor, the coin price could regain momentum and drive a 55% recovery to challenge $0.00000553.
Alternatively, if the coin price falls within the wedge pattern again, the seller could strengthen their grip over this asset. This breakdown could pull the price back to $0.000003.
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