PEPE bulls are taking a serious hit as millions of dollars in leveraged futures positions disappear amid a sharp market downturn. Approximately $2.62 million worth of PEPE futures positions were liquidated within 24 hours, with bullish traders bearing most of the losses. The latest developments highlight growing pressure on PEPE as bearish momentum continues to challenge market confidence.

Leveraged Long Traders Take the Biggest Hit

According to reported derivatives data, nearly 94% of PEPE liquidations came from long positions. This means traders betting on higher prices suffered the majority of forced closures as the token declined.

The pressure also extended to the futures market, where open interest dropped approximately 10%, falling from $377 million to $339 million. Meanwhile, funding rates turned negative, suggesting a shift toward bearish positioning.

Selling Pressure Raises Recovery Concerns

The liquidation wave reflects the risks of excessive leverage during volatile market conditions. When prices fall, leveraged long positions can be automatically closed, potentially adding further selling pressure.

Despite previous whale withdrawals that suggested possible accumulation, PEPE has struggled to maintain upward momentum.

Can PEPE Bulls Make a Comeback?

The immediate outlook depends on whether buyers can restore demand and stabilize the price. A recovery in spot buying volume and improving derivatives sentiment could help PEPE regain bullish momentum.

However, continued liquidations and weakening market participation may leave the memecoin vulnerable to further declines.

Market Outlook: With $2.62 million in futures liquidations and long traders absorbing most of the losses, PEPE remains under pressure. Bulls need stronger buying activity to reverse the bearish momentum.