PEPE Plummets 17% in a Day—Here’s Why the Bleeding Might Not Stop

Meme coin PEPE just got mauled—down 17% in 24 hours as traders ditch speculative assets. The charts scream ’danger,’ with key support levels crumbling faster than a crypto influencer’s credibility.

Whales are dumping, retail panic is setting in, and that ’buy the dip’ mantra? Sounds more like ’catch the falling knife’ this time. Even by crypto standards—where ’volatility’ is code for ’controlled demolition’—this looks ugly.

Pro tip: When a token named after an internet frog tanks, maybe don’t YOLO your rent money. Just saying.

Sellers are gaining strength in the market

The recent decline of Pepe stems from the intensifying selling pressure that’s brewing.

Comparing the selling to buying volume, analysis shows that 50.77% of the overall derivative market volume comes from sellers.

Source: CoinGlass

That’s not all — there’s been a 23% decline in Open Interest, which suggests that as selling volume increases, traders are losing and closing positions.

AMBCrypto found that long traders have been on the losing end, especially in the past 24 hours.

During this period, the market recorded a total liquidation of $8.97 million, with longs accounting for $7.32 million of the losses.

This significant share of losses shows that the market is decidedly bearish and is moving against traders with bullish bets.

This effect has spread fear across the market, leading to more sell-offs of PEPE and causing the asset to drop even further.

PEPE sellers are doubling down

Funding Rate data, which indicates which market cohort is paying a premium to maintain positions, shows that sellers are paying.

When sellers pay a premium, it indicates that the market is moving in their direction, and the fee helps maintain the price difference between the spot and Futures markets.

Source: CoinGlass

At the time of writing, the Funding Rate stood at -0.0078%, one of the highest recorded from sellers in a while.

If this downward pressure continues — along with declining OI and higher selling volume — PEPE has a high potential to drop even lower.

Buyers accumulate, but the threat remains — Here’s why

Amid all this, buyers remain active in the market and continue to accumulate the asset despite the drop. Spot market analysis shows that these investors purchased over $1.59 million worth of PEPE in the past 24 hours.

Source: CoinGlass

Interestingly, 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, which identify overbought or oversold conditions, confirms this sentiment.

Currently, PEPE has entered the oversold region, crossing below the red line — a MOVE that has historically marked the beginning of major rallies.

Source: TradingView

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.