Majority Of PEPE Holders Struggle With Losses Despite Bullish Surges! Is Pepe Price Forming A Bull Trap?
The post Majority Of PEPE Holders Struggle With Losses Despite Bullish Surges! Is Pepe Price Forming A Bull Trap? appeared on BitcoinEthereumNews.com.
As Bitcoin’s price maintains its upward momentum in recent days, the altcoin market is experiencing a surge in trading volume. Alongside this, meme coins are showing signs of recovery from their earlier lows, with Pepe coin notably recording significant gains in the past few hours. Despite this uptick in Pepe’s value, there’s growing concern about the potential for a long squeeze due to a lack of on-chain support. Loss-Making Addresses Might Bring Correction Data from Coinglass reveals that a massive short liquidation exceeding $300K occurred in the Pepe market following a sharp price increase from $0.00000125 to $0.0000016 in recent hours. This price jump appears to be prompting investors to leave the market with profits, as suggested by recent on-chain activity. According to IntoTheBlock, the number of Pepe’s loss-making addresses has significantly increased, recently reaching 70,000, which represents about 42% of all holders. Conversely, the number of profitable addresses has decreased to 47% or 77,000 addresses, indicating a trend where new holders are more frequently experiencing losses. There is a possibility that these loss-making addresses could become profitable if Pepe’s value were to surge more. This potential increase might prompt these holders to sell their holdings, aiming to minimize their losses or secure a small profit. Such a move could lead to a downward correction in the market. It’s important to note that a correction in Pepe’s value, especially during an overall upward momentum like now, could lead to a long squeeze. In such a scenario, holders of long positions may panic and sell their holdings, potentially causing a significant drop in value below the immediate support levels. Over the last few hours, the long/short ratio for Pepe has declined below 1, suggesting that short-positions are dominating. Currently, the market is going for a correction as 57% short positions are…
Filed under: News - @ December 22, 2023 11:10 pm