The market downtrend over the last few months has led Pepe (PEPE) to lose substantial valuation. According to CoinGecko data, the memecoin has fallen to the 60th place in the market cap charts. PEPE’s price has crashed 1.2% in the last 24 hours, 22.6% in the last month, and 83.1% since December 2024. Despite the dip, the memecoin has gained 13.4% in the last week and 0.7% in the 14-day charts. Let’s discuss if the frog-themed memecoin can recover from the dip over the coming weeks.

Will Pepe Recover From Its Price Crash?

The crypto market started with t a bullish swing in 2025. However, the market turned red in October, experiencing its biggest single-day liquidation ever. Pepe (PEPE) was among the most affected cryptocurrencies in the market. The October crash was surprising, especially because the Federal Reserve lowered interest rates by 25 basis points. The crash was likely due to macroeconomic uncertainties.

PEPE could see a price rebound over the coming days. There is a high chance that the Federal Reserve will roll out another interest rate cut after Wednesday’s Federal Open Market Committee (FOMC) meeting. Another rate cut could lead to a market-wide rally. PEPE and other risky assets could see a surge in inflows.

Furthermore, Bernstein and Grayscale anticipate Bitcoin (BTC) to climb to a new all-time high in 2026. Both financial institutions predict Bitcoin (BTC) to break out of its 4-year cycle. BTC hitting a new all-time high could lead to a massive surge in investor sentiment. Such a development could push PEPE to new heights as well.

Nonetheless, there is also a possibility that the market will not react to a potential interest rate cut, as seen in October. Such a development could lead to another price correction for PEPE.