Usman Salis
Pepe's having a rough time lately. The frog-themed token is down 33% from its June peak, trading at $0.0000100095 on Saturday. But here's the kicker - multiple warning signs suggest this isn't the bottom yet.
PEPE Futures Market Turns Ugly Fast
Things are looking pretty grim in the derivatives space. CoinGlass data shows PEPE's funding rate just flipped negative to minus 0.011% - the most bearish it's been since August 24th. When funding rates go negative, it means futures traders are literally paying to bet against the price.
Think of it this way: traders are so convinced PEPE will drop further that they're willing to pay extra fees just to keep their short positions open. That's not exactly a vote of confidence.
Meanwhile, open interest has been bleeding out. We're talking about a massive drop from over $1 billion in July down to just $548 million - the lowest since June. When both open interest and volume are tanking together, it usually means people are losing interest fast.
PEPE Technical Charts Tell a Brutal Story
The charts aren't looking friendly either. PEPE just crashed below the crucial $0.0000098 support level, which completely killed off what looked like a promising double-bottom pattern. Bulls were counting on that pattern to save the day, but it's toast now.
What makes this breakdown even worse is that PEPE also broke below a symmetrical triangle pattern that was keeping things somewhat contained. But here's the real nail in the coffin - we're seeing a death cross formation where the 50-day moving average crossed below the 200-day. That's crypto trader speak for "things are about to get uglier."
Smart Money is Running for the Hills
Here's what should really worry PEPE holders: the smart money is bailing out fast. Nansen data shows smart money holdings have dropped a massive 23% in just 30 days. These are the traders who usually know something before everyone else does.
Even worse, the whales - those big investors who typically step in during crashes - are sitting this one out. Their holdings have stayed flat, which means they're not interested in catching this falling knife.
Where PEPE Could Be Heading Next
With all these red flags piling up, PEPE looks like it's headed for more pain. The technical targets are pointing toward $0.0000082 - that's the July 22nd low and about 18% below current levels.
The liquidation cascade is already starting to pick up steam, which could create even more selling pressure. When leveraged traders get forced out, it often triggers a domino effect that pushes prices down faster than anyone expects.
Usman Salis
