Pepe Price Forecast: Pepe defends a key support amid mixed retail demand

Pepe (PEPE) is up nearly 2% on Monday after a 10% decline last week, showing signs of a mild recovery, while broader crypto market risk appetite remains weak. PEPE derivatives data point to a mixed outlook, as Open Interest declines while funding rates turn positive. Technically, PEPE must hold above its $0.00000255 support floor to avoid a downside of over 10%. 

PEPE retail strength in a limbo

Pepe shows early signs of renewed retail strength, which could support its mild intraday recovery. CoinGlass data shows the PEPE futures Open Interest is down roughly 3% over the last 24 hours, contracting the notional value of active contracts to $192.99 million. Liquidation data points to a primarily bullish positional wipeout in the same time period, with long liquidations of $345,100 and short liquidations of $37,980. Taken together, PEPE derivatives indicate that long-side positional buildup faces a higher risk of liquidation.

Still, the funding rate is up to 0.0017%, from -0.0100% the previous day, suggesting renewed buying pressure in long positions as traders anticipate reduced downside or a potential rebound.

Technical outlook: Will PEPE bounce back?

Pepe edges higher at press time on Monday, following a 10% rebound last week. The meme coin is holding ground at a crucial support level of $0.00000255, marked by the July 8 low. The mild recovery in Pepe hints at early signs of a potential rebound, extending the consolidation capped by the June 15 high at $0.00000314.

Momentum on the daily chart remains weak, with the relative strength index (RSI) at 39, indicating persistent downside pressure but not yet in oversold territory. Meanwhile, the moving average convergence divergence (MACD) extends a declining trend below the zero line, with a negative histogram expanding, reaffirming the bearish bias.

Looking down, a daily close below the $0.00000255 support level could nullify the rebound chances and extend the decline toward the July 1 low at $0.00000223, hinting at a downside of over 10%.

(The technical analysis of this story was written with the help of an AI tool. Know more.)