PEPE Drops 17% Amid Selling Pressure Despite 25% Monthly Gain

PEPE, a memecoin, has experienced a significant market loss, dropping 17% in the past 24 hours. Despite this decline, PEPE had shown bullish performance over the past month, with an accrued gain of 25%.

The recent decline of PEPE is attributed to intensifying selling pressure in the market. Analysis indicates that 50.77% of the overall derivative market volume comes from sellers, suggesting a strong bearish sentiment. Additionally, there has been a 23% decline in Open Interest, indicating that traders are losing and closing positions, with long traders being particularly affected.

Funding Rate data further supports the bearish trend, showing that sellers are paying a premium to maintain positions. At the time of writing, the Funding Rate stood at -0.0078%, one of the highest recorded from sellers in a while. This downward pressure, combined with declining Open Interest and higher selling volume, suggests that PEPE has a high potential to drop even lower.

Despite the bearish sentiment, buyers remain active in the market, accumulating the asset despite the drop. Spot market analysis shows that investors purchased over $1.59 million worth of PEPE in the past 24 hours, and in the past week, investors scooped up a total of $69.3 million worth of PEPE, contributing to the bullish outlook.

An analysis of the Bollinger Bands confirms this sentiment, as PEPE has entered the oversold region, crossing below the red line—a move that has historically marked the beginning of major rallies. However, a potential drop still looms, as selling pressure continues to grow. If the decline persists, PEPE could fall to the nearest support level at $0.000008777. While the likelihood of a drop to this level remains relatively slim, it cannot be ruled out.