PEPE Under Pressure as Open Interest Falls and Technicals Turn Bearish
PEPE price has extended its bearish trend despite Bitcoin’s recent ~5% rebound. The memecoin fell about 2% in 24 hours and roughly 21% since December’s high. Open interest in PEPE derivatives dropped from $121.5M on Dec 20 to $114.5M, signalling waning trader conviction and reduced liquidity. Daily technicals show a bearish breakdown from the $0.000044–$0.000050 supply zone, RSI around 40, and a declining Accumulation/Distribution line — all indicating sustained selling pressure. 1-hour charts confirm continued bearish momentum. Key levels to watch: $0.0000420 (near-term resistance), and higher resistance at $0.0000452 and $0.0000476; failure to reclaim these suggests further downside. Traders should prioritise risk management: monitor open interest and volume for signs of liquidation or renewed buying, use protective stops, avoid aggressive long positions, and consider short or sell setups around identified resistance until indicators show a clear reversal.
Bearish
The combined reports point to a clear bearish outlook for PEPE. Key on-chain metric — open interest — declined from $121.5M to $114.5M, signaling weaker trader conviction and lower leveraged exposure that reduces the likelihood of a bullish squeeze. Price structure shows a daily breakdown from the $0.000044–$0.000050 supply zone, accompanied by RSI near 40 and a falling Accumulation/Distribution line, which together indicate continued distribution and selling pressure. Shorter timeframes (1-hour) confirm ongoing downside momentum. In the short term, this raises the probability of further declines or range-bound weakness until PEPE reclaims the noted resistance levels. For traders, the immediate implications are to favour defensive tactics: tight stops, avoid initiating aggressive long positions, consider short or hedge strategies around resistance, and watch open interest and volume for signs of capitulation or renewed buying that could signal a reversal. Over the longer term, sustained low open interest and continued negative technical structure would keep sentiment constrained and delay any sustained recovery unless there is a material catalyst to restore demand.