PEPE Long Liquidations Hit $7.7M as Price Drops 14% in a Week
PEPE’s recent price drop has led to a wave of liquidations among traders holding long positions on the meme coin futures market. Over $7 million worth of long positions were liquidated over the past three days, marking huge losses for bullish traders.
If the decline continues in the short term, PEPE long holders may face further losses. Here’s why.
PEPE’s tough prices lead to $7.7 million in liquidations
PEPE prices fall It’s been like this for the past few days. At press time, the Meme coin was trading at $0.000017, with the price down 14% in the past seven days.
Coinglass data shows that the price drop triggered a wave of PEPE long position liquidation in the futures market, with the total liquidation amounting to $7.73 million since January 6.
Liquidation occurs in the asset’s derivatives market when the asset’s price moves against a trader’s position, forcing the position to be closed due to insufficient funds to maintain the position.
Long liquidation occurs when traders who bet on rising prices are forced to sell assets at lower prices to cover losses. This usually happens when the value of an asset falls below a critical level, forcing long traders to exit the market.
Additionally, PEPE’s open interest It has decreased in recent days. This highlights the meme coin’s low trading activity and contributes to its continued price decline. As of this writing, that number stands at $503 million, down 19% over the past week.
Open interest refers to the total number of open contracts or positions in the derivatives market for a specific asset that have not yet been settled. When it falls, it indicates traders are closing their positions, indicating less market participation.
PEPE Price Forecast: Bearish Momentum Continues
PEPE continue trading Below the downtrend line on the daily chart. This pattern forms when an asset price makes a series of lower highs, indicating a downtrend.
When an asset trades below this line, it signals continued bearish momentum and suggests the price may face further downward pressure. If this trend continues, PEPE’s price could drop to $0.000015.
On the contrary, if buying pressure increases, memecoin price A break of the descending trendline forming resistance at $0.000020 is possible.
Disclaimer
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