So I see PEPE again pressing down below the main support level, and honestly many are nervous about the current memecoin sector conditions. Bitcoin has already fallen below 70K, and traders are wondering whether PEPE will break further down or if a sudden short squeeze will cause its price to jump.

Based on the data I monitor, PEPE is still around an important support level while the market structure remains bearish. Open interest is decreasing, meaning traders are becoming cautious and speculative positions are reducing. The memecoin sector has declined 48% year-over-year, lagging far behind DeFi and Layer 2. Speculative demand is weak, but what's interesting is there is a large cluster of shorts above the current price.

Looking at support and resistance, PEPE has several crucial levels. The nearest support is around $0.00000336, with deeper support at $0.00000303. The nearest resistance is at $0.00000379, and there’s a significant liquidity cluster above $0.0000038. This is important because if buyers can reclaim that level, there’s potential for a short squeeze that could move the price quickly.

I think there are three possible scenarios. First, a bearish scenario if PEPE breaks below the main support, potentially dropping to $0.00000303. Second, a range scenario where the price consolidates between support and resistance. Third, a bullish scenario if buyers gain strength and the price rises above $0.0000038, which could trigger a short squeeze. The Eden community and other on-chain traders are also closely monitoring these levels.

Bottom line, PEPE is still under pressure but the large short positions could trigger sharp volatility ahead. If buyers manage to reclaim $0.0000038, it could be an interesting moment. But if not, the downward trend may continue toward $0.0000030. One thing’s for sure, the strong correlation with Bitcoin remains a key factor for PEPE’s future movement.