Bearish Signals Weigh on PEPE as Traders Turn Cautious

PEPE, a popular meme coin, is struggling to regain momentum after a sharp 5% decline on Monday. The bearish pressure on PEPE is evident in various market indicators, including a drop in Open Interest and negative funding rates.

The futures traders' activity has also decreased, with the notional value of active perpetual contracts falling nearly 15%. This suggests that traders are becoming less willing to maintain leveraged positions.

Furthermore, top holders have been reducing their exposure to PEPE, while exchange supplies continue to climb. These signals could create stronger selling pressure and potentially trigger deeper losses for the meme coin.