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

Futures open interest for PEPE drops 8% to $556.95 million, signaling capital outflow

Recent data from CoinGlass reveals a concerning trend for PEPE token's derivatives market. The open interest for PEPE futures has experienced a significant 8% decline over the past 24 hours, settling at $556.95 million. This decrease represents a substantial capital outflow from the futures market, potentially indicating shifting investor sentiment toward the popular meme coin.

The decline becomes particularly noteworthy when examined against PEPE's current market fundamentals:

This derivatives market contraction follows a period of high volatility, with PEPE's price experiencing significant fluctuations throughout October 2025. The token's market capitalization has decreased substantially from its peak of approximately $10 billion earlier this year to its current valuation of $5.4 billion.

The reduction in futures open interest often signals decreased trader confidence in an asset's near-term prospects. Professional traders appear to be reducing their exposure to PEPE, which could potentially forecast further price weakness. This development coincides with broader meme coin market corrections, suggesting investors may be rotating capital away from speculative assets toward more established cryptocurrencies in the current market environment.

Funding rate turns negative at -0.0168%, indicating bearish sentiment

The recent negative funding rate of -0.0168% for PEPE represents a significant shift in market sentiment, suggesting bearish pressure has intensified. This metric indicates that short position holders are now being paid by those in long positions – a complete reversal from typical market conditions where optimistic traders pay pessimistic ones.

The negative rate coincides with substantial whale activity, particularly a notable 588 billion PEPE token deposit worth approximately $10.99 million into centralized exchanges. This large-scale movement has triggered downward price pressure as shown in recent market performance:

The current price of $0.000006587 represents a dramatic 76.8% drop from PEPE's all-time high of $0.00002835, achieved in December 2024. This bearish funding rate emerged amid broader meme coin sector weakness, with trading volumes surging to levels 7.55% above weekly averages according to technical analysis data. Financial experts warn of continued downside risk based on this negative funding rate pattern, suggesting smart money investors have reduced their PEPE holdings by approximately 23% over the past month despite record holder counts reaching 472,000.

Death cross formation looms as 50-day and 100-day EMAs approach 200-day EMA

Technical indicators show PEPE's market structure deteriorating as the 50-day and 100-day exponential moving averages (EMAs) approach the 200-day EMA, signaling a potential death cross formation. This bearish pattern typically indicates a shift from bullish to bearish momentum, with long-term averages confirming downward pressure.

PEPE's price action reveals significant vulnerability in recent months, as evidenced by the crossing EMAs and declining price support levels:

The price has fallen dramatically from its June peak, dropping 33% by late August 2025, and has continued this negative trajectory. The October crash saw PEPE plummet to $0.000006587, a stark decline from September's $0.000010+ levels.

While some analysts project PEPE could reach a $50 billion market cap in the future (compared to current $2.77 billion), the immediate technical outlook remains concerning. This bearish formation coincides with declining whale confidence, as smart money holdings dropped 23% over the past month despite record holder counts reaching 472,000. Traders should exercise caution as this death cross typically precedes extended downtrends rather than serving as a buying opportunity.

FAQ

Will Pepe Coin reach $1?

Pepe Coin reaching $1 is highly improbable. It would require a massive market cap, surpassing the entire crypto market's current value.

Is Pepe a good coin to buy?

PEPE shows strong momentum and deflationary tokenomics, but high volatility makes it risky. Consider carefully before investing.

Does Pepe Coin have a future?

Yes, Pepe Coin has potential. Predictions suggest it could reach $0.00004500 by 2029 with strong community support and favorable market conditions. However, its future remains volatile and uncertain.

How much will Pepe be in 2025?

Based on current projections, Pepe (PEPE) is expected to trade between $0.00000571 and $0.00000693 in 2025, with a potential maximum price of $0.0000106.