The Pepe price has been stuck within a strong descending trend since the start of the year, highlighting the rising bearish influence. The price is rising today by nearly 6%, trading at $0.000003535 with a significant rise in volume by nearly 130%. These figures suggest PEPE is no longer in a clear downtrend—but it’s not breaking out either.
Price has stabilized near key support, holding its base despite consistent bearish positioning in the derivatives market. This kind of divergence doesn’t last but revolves with a sharp move, and the current setup indicates pressure is building beneath the surface.
Will Pepe’s price trigger a breakout and break the bearish trend, as derivative data reveals a positioning imbalance?
Funding Rate: Persistent Bearish Bias
Funding rates have remained consistently negative over the past sessions, indicating that short positions continue to dominate. Traders are actively paying to hold bearish bets, expecting the price to break lower.
However, despite this sustained bearish positioning, PEPE has not followed through to the downside. Price continues to hold its base, suggesting that selling pressure is not translating into actual weakness. This is the first sign of imbalance.
Open Interest: Leverage Reset, Not Expansion
Open interest has declined sharply from its previous highs and is now stabilizing at lower levels. This indicates that excessive leverage has already been flushed out of the system.
In trending moves, rising open interest typically supports continuation. But in this case, the decline suggests the market has entered a reset phase, where positions have been cleared, but new conviction has not yet entered. This reduces the risk of aggressive liquidations but also means the next move will require fresh participation.
Liquidations: Shorts Cleared, But No New Pressure
Earlier in the cycle, the market saw a wave of short liquidations, indicating that bearish traders were forced out during brief upside moves. Since then, liquidation activity has cooled, with no major long-side wipeouts.
This is important as it shows that the downside move has already punished shorts and the market is no longer aggressively liquidating participants. Yet despite this reset, traders continue to lean bearish through funding.
Despite PEPE’s stabilization near its base and avoidance of further breakdown, derivative data indicate that traders continue to position themselves for a downside. This creates a clear mismatch between what the market expects and what the price is actually doing. The derivatives market is misaligned with price, and this kind of divergence usually resolves quickly.
PEPE Price Analysis: Is the Memecoin Heading for a Short Squeeze?
After a prolonged decline, the PEPE price has started to stabilize near the 0.0000029–0.0000032 support zone, forming a base. At the same time, a descending trendline continues to cap upside, keeping the broader structure under pressure. This creates a tightening range, indicating PEPE is no longer in a clean downtrend—it’s transitioning into a compression phase.
The chart suggests a clear falling wedge structure where the price is forming consecutive lower highs, indicating consistent pressure from the top. The support has become more or less stable as the buyers continue to defend the same price range. This combination reflects supply weakening over time.
The RSI is incremental and moving above the middle line, suggesting momentum is shifting from bearish to neutral to bullish. Besides, Accumulation/Distribution is trending sideways to slightly rising, suggesting selling pressure is no longer dominant. Hence, the current trade setup suggests the market is stabalising before the expansion, not trending lower.
What’s Next for the PEPE Price Rally?
PEPE is trading in a compression phase where price structure and derivatives positioning are diverging, with strong support holding at 0.0000029–0.0000032 despite persistent bearish sentiment reflected in negative funding and cooling open interest. This suggests weakening selling pressure and a potential early accumulation setup.
For traders, the key trigger remains a breakout above the 0.0000036 resistance trendline, which could open upside toward 0.0000051 and extend to 0.0000074 if momentum builds, while a breakdown below 0.0000029 would invalidate the setup and expose lower liquidity zones, keeping the current range intact until a decisive move occurs.
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