The PEPE meme coin market witnessed a surprising turn of events on July 7th, 2024. Despite a seemingly minor 9% price increase, the move resulted in the largest liquidation event in PEPE’s history.
Short Squeeze Sends Shivers Down Bearish Spines
Data from Coinglass reveals a staggering $17 million liquidated from short positions within a single day. This event highlights the significant number of traders betting on a further decline in PEPE’s price. The unexpected price rise caught these traders off guard, forcing them to buy back PEPE at a loss to cover their short positions.
Whales See Opportunity in the Dip
While the short squeeze caused significant losses for some, it appears to have emboldened others. Large wallet holders, including whales, have been accumulating PEPE over the past three weeks. According to Santiment, these top addresses have collectively purchased over 1.5 trillion PEPE, valued at more than $13 million. This suggests that whales view the recent price dip as a buying opportunity, anticipating a future price recovery.
Price Rebound or Deeper Downturn?
PEPE recently lost its uptrend that had been in place since mid-April. The price dropped from $0.00001146 to $0.00000889 at the time of writing. This fall below the crucial $0.00001000 level fueled bearish sentiment, with many predicting further decline.
However, the recent price increase offers a glimmer of hope. If PEPE can reclaim $0.00001000 as support, it could potentially rise back to $0.00001146, recovering recent losses. Conversely, a failure to hold this level could lead to a further drop towards $0.0000775, followed by consolidation below $0.00001000, ultimately invalidating the bullish thesis.
Looking Forward
The coming days will be crucial for PEPE. Will the bulls manage to capitalize on the recent price rise and push the price back up, or will the bears regain control, leading to a deeper downturn? Only time will tell how this meme coin story unfolds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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