PEPE’s drop isn’t because nobody’s buying—it's shorts actively adding to their positions at low levels. 0.00363 is sitting right on the seven-day low, then 0.00359; in three days it’s down 6%, and in seven days down 10.9%. Yet the contract open interest rose by 1.58% in a single day, and another 1.77% in just seven hours. Price is moving down while positions are moving up—so the four quadrants are directly marked as <bear_strong>.
The lower it falls, the heavier the positions are. This is a continuation of the downtrend, not bottoming. Active sell orders account for 52.6%, the long/short ratio is 0.90, and the funds are one-sided. The funding rate just flipped from positive to negative: out of 8 readings, 7 were positive, and this round is already -0.0042%. The shorts have started taking payments—the direction now aligns with the fund flow.
The only side going against the current is the whales: 69% of their position is long, and in the last seven hours they even added another 6.68%. But these longs got pushed from 0.0040 down to 0.0036; their floating loss is quickly nearing ten percent. The more the big players add, the more the price falls—when they finally give up and close, that day is when the selloff truly accelerates.
I’m on the short side. If 0.00359 breaks, I’ll follow through and look lower. Risks are also present: the funding rate turned negative, whales are heavily long, and the spot bid wall is 1.43x—so a rebound to 0.0038 could happen at any time. Therefore: if volume surges to reclaim 0.0038 and open interest keeps rising, it means the shorts’ added positions are being killed off. Then I’ll reverse and go long; until 0.0038 is broken and held, the downtrend isn’t over.
#pepe $PEPE