PEPE Price Takes a Hit: Sellers Gain Upper Hand Amid Weakening Market Sentiment

PEPE's recent price recovery has been erased by selling pressure, leaving it in a critical phase. Market sentiment has weakened as traders reduce exposure and large holders trim positions.

The decline of futures Open Interest by almost 15% alongside Monday's drop suggests fewer active positions across the derivatives market, indicating weaker trader confidence.

Funding rates have turned negative, with current funding standing near -0.0081%. Major holders have reduced their exposure during recent weeks, with supply controlled by top addresses declining from 171.12 trillion PEPE in late June to 164.65 trillion.

Exchange reserves have been climbing, with available supply increasing from 18.62 trillion PEPE last week to roughly 18.94 trillion. This rise in exchange balances often suggests greater selling pressure and makes upward price moves harder to sustain.