I just checked the PEPE situation a few days ago, and this meme coin is under quite heavy pressure. The entire memecoin sector has lost about 48% of its market cap over the past year, and this week alone, it’s down another 6.9%, while DeFi and Layer 2 projects are still experiencing modest growth. PEPE is particularly weak, with the local bottom zone at $0.00000336 still being tested repeatedly, and open contract indicators are also tightening.

What’s noteworthy is that below, there is a large volume of accumulated short positions. If you don’t know what short is, it simply means traders betting that the price will go down. Data from the 90-day liquidation map shows that the total leverage of short positions far exceeds that of longs. This means if the price suddenly rises, the likelihood of a short squeeze is very high — meaning a wave of short liquidations will be much stronger than during a price decline. A great opportunity for those who like to go against the market trend, but also carries risks if entering too quickly.

The key factor remains Bitcoin. BTC is currently at $66.80K, and if it continues to retreat to the $63,000–$65,000 range or lower, PEPE will face significant pressure. Conversely, if BTC holds steady, a short squeeze could occur in the next few weeks.

Regarding strategy, I don’t see PEPE as an ideal entry point right now. It’s trading below the support level of $0.00000342. If the downtrend continues, the price could retreat to $0.00000303. But if there’s a positive surprise from Bitcoin, a recovery could push PEPE to test the $0.00000379 zone. History shows memecoins tend to rise very quickly before a deep correction, so caution is advised. Watch the $0.0000038 level — that’s a potential target if strong buying emerges in the market. But first, we need to see what Bitcoin does.