Key Insights
- Pepe Coin dropped 33% from June highs and broke key support at $0.0000098, signaling heightened bearish sentiment in the market.
- Negative funding rates and declining open interest indicate lower confidence from futures traders, with reduced spot demand compounding weakness.
- A technical breakdown, including a death cross pattern, suggests the token could fall to its July low of $0.0000082.
Pepe Coin, the second-largest Ethereum-based meme cryptocurrency, traded at $0.0000100095 on August 30, marking a 33% decrease from its peak in June. The asset has broken below a crucial support level at $0.0000098, signaling growing pressure in the market.
According to CoinGlass, funding rates in the Pepe futures market have dropped into negative territory, reaching minus 0.011%, the lowest since August 24. A negative funding rate typically reflects bearish expectations among traders. It indicates that futures market participants are paying to hold short positions, expecting further declines.
Open interest and volume continue to fall
Pepe’s open interest in futures has fallen sharply from its July peak of over $1 billion to $548 million. This level marks the lowest since June. The drop in open interest and spot volume indicates reduced participation and weaker demand across both trading segments.
Rising liquidations have further intensified the price decline. As exchanges automatically close out leveraged positions during periods of extreme volatility, these forced sales amplify downward movement. The ongoing liquidations in Pepe futures markets suggest that leveraged traders are being pushed out as prices continue to fall.
Smart money and whales stay out
Nansen data reveals a shift in investor behavior. Holdings by smart money have dropped by 23% over the past 30 days. Whale holdings, meanwhile, have remained mostly unchanged, indicating a lack of new large-scale buying interest.
The daily chart shows that Pepe has breached key levels, including the lower boundary of a symmetrical triangle. The break below $0.0000098 invalidated a possible double-bottom pattern. Moreover, a death cross has formed, where the 50-day moving average crossed below the 200-day average. This is typically seen as a bearish signal, pointing to further losses.
With current momentum favoring sellers, analysts are now watching the $0.0000082 level as the next potential support zone. This level marks Pepe’s lowest price since July 22 and could become the next key test if downward pressure persists.
