PEPE Plunges 1%, Faces 10% Downside Risk Amid Market Volatility

PEPE, a prominent meme coin, has struggled to recover after declining nearly 1% on Monday. The token's price drop follows a 10% loss in the preceding week, with subdued overall market sentiment limiting potential for significant price rebound.

The derivatives data from CoinGlass show mixed signals among retail traders. PEPE's futures Open Interest dropped by over 5% in the past 24 hours to reach $193.99 million, indicating participants have exited positions or reduced their exposure. Long liquidations exceeded short liquidations, with approximately $328,070 in long liquidations compared to $39,240 in short liquidations.

This imbalance signals that recent price volatility has hurt bullish traders more severely and forced many to close out leveraged bets. The combination of falling Open Interest and significant long liquidations points to fragile bullish sentiment and an elevated risk of further declines if bearish pressure persists.