The cryptocurrency market has seen significant fluctuations throughout February 2025, with various coins experiencing sharp gains and losses amid changing economic conditions. Notably, the meme coin PEPE demonstrated remarkable volatility, trading within demand zones and rallying by 13% within hours before plunging again. According to reports, PEPE's trading volume surged by 193%, reaching $2.85 billion, yet it has faced a substantial 68% depreciation since December, failing to maintain key support levels and succumbing to bearish pressures.
This downturn coincided with one of the most significant bearish weekends the crypto market has witnessed, where PEPE was particularly targeted. Following its drop to the lowest price since November 9th, analysts predict potential recovery paths as it currently trades at $0.00000387—a point deemed as demand. Despite this uptick, there remains uncertainty as PEPE contends with underlying bearish trends.
Crypto analysts, including @CryptoKaleo, shared their outlook on PEPE's price movements, indicating strong selling pressures likely await meme coins as investors navigate through market volatility. While price pressures mount, on-chain data analysis suggests the recent price drop could be linked to excessive leverage within futures contracts. The derivative market saw approximately $1 billion cleared throughout the day, with PEPE alone incurring around $5 million in long liquidations.
Shifting focus to XRP and Dogecoin, both coins jumped by 20% before experiencing pullbacks due to China's announcement of retaliatory tariffs on U.S. imports. The tariff conflict raises questions among traders concerning the long-term impact on risk assets such as cryptocurrencies. According to Ben El-Baz, Managing Director at HashKey Global, this trade-off could diminish the risk appetite across various markets, exacerbated by the lack of clarity surrounding the U.S.-China trade scenario.
Following the initial surge, key assets like Bitcoin and Ethereum saw nearly 4% upticks but reflected similar volatility patterns later. There’s widespread concern about the tariffs instigatically impacting crypto markets, especially if they escalate tensions between economic giants, potentially leading to prolonged downturns.
Meanwhile, Shiba Inu (SHIB) displayed erratic trading patterns, dropping significantly to $0.000012 before recovering to highs of $0.00001622 within 24 hours. This stark price movement indicates heightened market volatility, prompting traders to become more active. Over the same timeframe, SHIB's trading volumes soared by 308%, hinting at strong trader engagement even amid sporadic sell-offs.
Market indicators, such as the burn rate and open interest, also saw declines. The SHIB burn rate fell by 91.61%, reflecting stunted speculative trading activities, though it showcased considerable weekly burn improvements. Despite these fluctuations, analysts remain hopeful for RECOVERY as SHIB holds strong support at $0.00001400. A rise above resistance at $0.00001900 would boost buyer interest, potentially driving prices higher.
Overall, February 2025 presents both challenges and opportunities within the cryptocurrency market. Experts continue to advise cautious trading as they monitor compliance with support and resistance levels which are pivotal for guiding traders' actions moving forward. Market volatility, influenced by external economic factors and internal market dynamics, will likely dictate near-term price movements as investors seek clarity.
Prospective traders are urged to exercise vigilance, evaluating signals of bullish momentum or possible bearish retracement. The ever-evolving cryptocurrency market continues to intrigue investors globally, hoping for shifts toward profitable trading opportunities amid fluctuational trends.