How Do Derivative Market Signals Predict PEPE's Price Movement in 2025?

Open interest declines 8% to $556.95 million, signaling bearish sentiment

The cryptocurrency market has witnessed a significant shift in sentiment for PEPE, as evidenced by the recent decline in open interest. The total open interest for PEPE futures contracts has dropped by 8%, reaching $556.95 million. This decrease is a clear indicator of bearish sentiment among traders and investors. To put this into perspective, let's compare the current open interest with previous levels:

This reduction in open interest coincides with a notable price decrease for PEPE. The token's value has fallen by 8%, now trading at $0.00007. Technical indicators further support the bearish outlook, with both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) showing downward trends. The RSI has dipped below 50, while the MACD continues to decline, reinforcing the negative market sentiment. These factors collectively suggest that traders are becoming increasingly cautious about PEPE's short-term prospects, potentially leading to further price declines in the coming days.

Funding rates turn negative, indicating short-term selling pressure

In 2025, PEPE's funding rates have turned negative, signaling a shift in short-term market sentiment. This development indicates increased selling pressure and potential bearish momentum. Negative funding rates often occur when short positions outweigh long positions in the perpetual futures market. This situation can lead to a self-reinforcing cycle, as traders may be incentivized to open more short positions to benefit from the negative funding payments.

To illustrate the impact of funding rates on PEPE's price, consider the following data:

As shown, periods of negative funding rates coincided with price fluctuations. However, it's crucial to note that PEPE's price resilience depends on balancing whale selling and retail accumulation. For instance, a $2.42 million transaction involving 227.8 billion PEPE tokens in August 2025 exemplifies how whale actions can distort short-term price trajectories. The interplay between these large-scale movements and retail investor behavior will likely determine PEPE's price stability in the face of negative funding rates.

Large wallet investors decrease holdings, suggesting reduced bullish confidence

Recent on-chain data for PEPE reveals a significant shift in investor sentiment and market dynamics. In 2025, large wallet holdings experienced a notable decline, while whale concentration increased by 3.2%. This trend suggests a redistribution of PEPE tokens from smaller investors to larger players in the market. The change in holdings is illustrated in the following table:

Despite the overall decrease in large wallet holdings, the price of PEPE dropped significantly but eventually stabilized. This price action indicates a complex interplay between selling pressure and accumulation by whales. Interestingly, whales continued to accumulate PEPE tokens despite the ongoing sell-offs, demonstrating their long-term confidence in the asset.

The contrasting behaviors of different investor groups highlight the current uncertainty in the PEPE market. While smaller investors appear to be reducing their exposure, possibly due to short-term concerns or profit-taking, larger players are seizing the opportunity to increase their stakes. This divergence in strategy could lead to increased volatility and potentially set the stage for future price movements as the market seeks to find a new equilibrium between supply and demand.

FAQ

Can Pepe Coin reach $1 dollar?

Based on current market conditions, it's highly improbable for Pepe Coin to reach $1. The coin would need unprecedented growth and market cap expansion to achieve this price point.

Is Pepe Coin a good investment?

Yes, Pepe Coin shows strong potential. Its popularity and market performance indicate it could be a lucrative investment in the current crypto landscape.

How much will PEPE be in 2025?

PEPE is expected to reach between $0.00000528 and $0.00000761 in October 2025, with a potential maximum of $0.0000104.

What if I invest $100 in Pepe Coin?

If you invested $100 in Pepe Coin, it could potentially be worth $32,365.88 now, representing a 32,265.9% return based on current market conditions.