Frog-themed cryptocurrency PEPE (PEPE) is under increasing pressure, as its price approaches a critical support level. PEPE was down 5.65% in the previous 24 hours, trading at $0.000001247, but is still up 8% weekly.

Signs of fatigue are emerging on the broader crypto market following a recent rise, with major cryptocurrencies showing early signs of profit-taking. Major tokens appear to be showing early signs of a local top as traders seek rotation and macroeconomic cues, despite optimism about ETFs, stablecoins and broader adoption.

In the last 24 hours, $327 million have been liquidated across various assets on the crypto market, according to CoinGlass data. Long positions were liquidated for $272 million, while shorts accounted for $54 million.

PEPE eyes crucial support

While market sentiment is generally positive, several cryptocurrencies are currently lingering near local resistance levels, urging cautious traders to lock in gains.

PEPE's most recent price action has seen it fall below its 200-day Simple Moving Average (SMA), a commonly followed technical indicator used by traders to judge long-term trend strength.

If the selling pressure persists, the next line of defense is the 50-day SMA, which is at $0.000001168. A decline below this level could indicate trouble for the frog-themed meme coin, since it risks "adding a zero" to its price, implying that a further slide could push the coin from the sixth decimal place to the seventh.

If the price falls further from the daily SMA 50, PEPE may test support at $0.000001037, which is the June 5 low. If this support is lost, PEPE might return to its previous range, which spanned late January through early May.