• PEPE’s selling volume of has risen significantly, and Open Interest continues to fall.
• There are no nearby support to provide a rebound, and PEPE hints at a further potential drop.

Pepe [PEPE] has recorded a major market loss, shedding 17% in the past 24 hours. Interestingly, the memecoin’s performance remained bullish over the past month, with an accrued gain of 25%.

Currently, market sentiment suggests that the asset could record an even further price decline as the selling force continues to heighten.

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.

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.

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.

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.

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.

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.

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.