PEPE plummet 17% in 24 hours: Has the correction ended or just begun?

Pepe (PEPE) has just witnessed a sharp fall, evaporating up to 17% of its value in just 24 hours – a correction that surprised many investors. However, looking back at the overall picture in the past 30 days, this famous memecoin has still maintained an impressive growth momentum with an accumulation profit of up to 25%.

However, signals from the market indicate that selling pressure is increasing, opening up the possibility that the decline of PEPE may not stop here.

Bears dominate

Recently, PEPE has experienced a strong correction, primarily due to increasing selling pressure in the market. Analytical data shows that selling power is clearly dominant, with 50.77% of the total trading volume in derivatives coming from the bears.

Not only that, the open contract (OI) — an index reflecting the total number of contracts that have not been settled — has also fallen sharply by 23%. This indicates that when selling pressure increases, many traders are forced to cut losses and close their positions.

Source: CoinGlassAccording to statistics from Bitcoin Magazine, the group betting on the upward trend (Long) is currently the most severely affected group, especially in the last 24 hours. The total value of liquidated positions during this period has reached 8.97 million USD, of which long orders alone accounted for up to 7.32 million USD — a dominant ratio, clearly reflecting the serious imbalance in the current market sentiment.

This significant loss rate reflects the reality that the market is heavily leaning towards the bears, contrary to the expectations of investors betting on a bullish trend.

This effect has spread fear across the market, further driving sell-offs of PEPE and causing the value of this asset to continue to plummet.

Selling pressure increases

The Funding Rate index — reflecting which side is paying fees to maintain the derivative position — currently shows that the bears are the ones bearing the costs.

When the seller is willing to pay the fee, it usually means that the market is leaning towards a downtrend, and that fee acts as a balancing factor between the spot price and the futures price.

Source: CoinGlassCurrently, the Funding Rate is recorded at -0.0078% — one of the deepest negative levels in recent times, indicating that selling pressure is clearly dominant.

If this downward trend continues to be reinforced by a decrease in open contracts and a sharp increase in selling volume, the price of PEPE may face the risk of a deeper correction.

The bulls have not stepped back — but risks still lurk.

Amid strong fluctuations in the market, the buying force has not weakened. Despite the price decline, investors continue to accumulate PEPE, reflecting their confidence in the long-term potential of this memecoin. Data from the spot market shows that in just the past 24 hours, over 1.59 million USD worth of PEPE has been purchased.

Source: CoinGlassMore notably, the total amount of PEPE accumulated over the past week reached 69.3 million USD — a significant figure indicating that the capital is still flowing strongly into this asset, reinforcing expectations for a price uptrend in the near future.

Technical analysis is also sending positive signals. The Bollinger Bands indicator – often used to assess overbought or oversold levels – shows that PEPE has now fallen into the oversold zone, sliding below the lower band (lower band). In the past, such moments have often been the starting point for strong upward movements.

Source: TradingViewAlthough PEPE has maintained some stability, the risk of a fall has not disappeared as selling pressure remains present. If the negative trend continues, this memecoin may retreat to the nearest support zone at $0.000008777.

Although the probability of a deep fall to this price level is not very high, that scenario still needs to be taken into account in the context of a market that remains full of unpredictable fluctuations.

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