PEPE Drops 6.03% Amid Heavy Selling Pressure, Traders Accumulate $53.11M

Traders have recently purchased $53.11 million worth of PEPE, indicating a significant accumulation of the cryptocurrency. This buying spree is the highest weekly purchase since late January, suggesting that investors are showing renewed interest in PEPE despite its recent price declines.

PEPE has experienced a decline of 6.03% in the past 24 hours, with a weekly loss of 26.02% and a monthly downturn of 31.88%. Despite this sluggish market performance, there are signs of bullish sentiment emerging. The cryptocurrency has breached a one-year support level, which previously facilitated price recovery and led to a 348% rise. This recent support-level breach might indicate a stop hunt, where investors push prices lower intentionally to trigger stop-loss orders before quickly buying more of the asset, causing a rally.

Historically, PEPE has shown a pattern of bouncing back after breaching support levels. In April 2024, PEPE breached this support level in a stop-hunt move, followed by a 338.9% bounce. A similar scenario might occur here, but the bounce could also lead to a further drop, potentially reaching the lower support of $0.00000399 before resuming its upward trajectory.

The Relative Strength Index (RSI) measures overbought (above 70) and oversold (below 30) conditions. PEPE recently exited the oversold region, with a current RSI reading of 31.87 and trending higher. If this trend continues, it could signal the start of a PEPE rally. However, the last two RSI cycles suggest that sellers are not fully exhausted, as prices rise slightly before dropping again. If this pattern persists, PEPE’s recent RSI bounce may only be temporary. A sustained rally would require the RSI to exceed the last three circled points significantly, indicating that sellers are fully exhausted and allowing buyers to re-enter the market.

In the futures market, there is heavy selling pressure. The Futures’ Open Interest (OI) Weighted Funding Rate has declined to a historic level of -0.0297, the lowest since its inception. This major negative OI-weighted funding rate indicates that sellers heavily dominate the market. This metric combines OI with the Funding Rate to determine