Pepe's Death Cross and Dwindling Confidence Signal Fresh Selling Wave

Pepe Coin price has fallen below a key support level, raising concerns among traders and analysts about the potential for a more substantial decline. The token's current price of $0.0000100095 marks a 33% drop from its June high, with technical indicators and on-chain data suggesting further downward momentum. CoinGlass data highlights several red flags, including a negative weighted funding rate, a decline in open interest, and rising liquidations, all of which contribute to increased selling pressure and reduced market confidence.

The funding rate for Pepe Coin has turned negative, reaching a low of minus 0.011%, according to CoinGlass. This shift indicates that market participants are anticipating a lower future price. A negative funding rate typically signals bearish sentiment in the futures market, as it suggests traders are willing to pay to short the asset. This development, combined with the token’s retreat below key technical levels, has prompted many to question its near-term stability.

Pepe Coin’s on-chain metrics further underscore the bearish outlook. The futures open interest has declined significantly, from a peak of over $1 billion in July to $548 million, the lowest level since June. The drop in open interest is often interpreted as a sign of waning interest or reduced leverage in the market, both of which can lead to further price depreciation. Additionally, liquidations have surged as leveraged positions are being forced to close, adding to the downward pressure on the price.

From a technical analysis perspective, Pepe Coin has formed a death cross pattern on the daily chart, as the 50-day moving average crossed below the 200-day average. This pattern is traditionally viewed as a bearish signal and may indicate a prolonged downturn. Furthermore, the price has broken below the critical support level at $0.0000098, invalidating a potential double-bottom pattern. Traders are now watching for the price to test the next major support at $0.0000082, its lowest level since July 22.

Smart money and whale investors have also shown signs of disengagement. Smart money holdings have dropped by 23% over the last 30 days, while whale holdings have remained stagnant. This shift in institutional and large investor behavior is often seen as a precursor to significant price movements, particularly in volatile assets like meme coins. The lack of significant accumulation from these actors suggests limited confidence in a near-term recovery.

Analysts have expressed caution about Pepe Coin’s short-term prospects. The price has stabilized around $0.00001000, holding key wedge support, but the path to recovery remains uncertain. Resistance levels between $0.00001200 and $0.00001327 are seen as critical for any bullish move. However, with the current market environment showing signs of exhaustion and declining on-chain activity, the likelihood of a sustained rally appears limited. Traders are advised to monitor key levels and volume patterns for signs of a potential reversal.

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