After a sharp decline, Pepe (PEPE) saw a minor recovery but continues to show signs of weakness across multiple fronts. Data from on-chain and derivatives markets points to a potential for further price drops.
Whale Holders and Profitability Decline
Large investors, or whales, are moving out of PEPE. The number of wallets holding between 100 million and 1 billion PEPE has dropped, and those with over 1 billion coins have also decreased. This exit has pushed the percentage of the total supply in profit down to a two-month low of just 37.6%, creating more pressure on the price.
Derivatives Market Turns Bearish
The sentiment in the derivatives market is also increasingly negative. Open interest has fallen by 8%, and negative funding rates indicate that traders are betting on a continued price drop. The long/short ratio is below 1, confirming that short positions are more popular, reflecting a lack of confidence from traders.
Technical Outlook Suggests Further Drop
Technically, PEPE's chart shows a strong bearish trend. The price could fall to the $0.00000900 support level. A potential "death cross", where the 50 and 100-day exponential moving averages (EMAs) cross below the 200-day EMA, could signal more significant declines. With the MACD remaining negative and the RSI near oversold territory, the momentum is clearly with the sellers. For a reversal, PEPE would need to close above its resistance level and reclaim the 200-day EMA at $0.00001115. Until then, the risk of a deeper decline remains high.
August 2025, Cryptoniteuae