đ PEPE Price Plunges 15%: Is it a Bear Trap?
PEPE price slipped below $0.00008 on Monday, August 12, marking a 15% decline over the last three days. While bulls who bought the dip during last weekâs rebound are booking profits, derivatives market data suggests the ongoing PEPE correction could be a bear trap.
đ¸ PEPE Price Fails to Flip $0.00001 Resistance
The PEPE price rally stalled over the weekend following a remarkable rebound from the August 5 market crash. The initial negative sentiment surrounding the PEPE market started to fade after the crash, with a strong rebound that saw the price climb significantly.
The bullish news from Brazil approving spot SOL ETFs and Russia authorizing crypto mining provided an additional boost. These developments propelled SOL to a 54.3% rally between August 5 and August 9, reigniting investor interest in the broader crypto markets.
However, this bullish news cycle may have created an artificial demand surge without any real short-term improvement in market fundamentals. The substantial gains on a weekly timeframe prompted short-term traders to book profits. Consequently, PEPE price rejected at $0.00008, leading to a 15% decline over the weekend.
Instead of holding out for a $0.000010 breakout, many short traders opted to lock in profits generated from PEPEâs 57% rebound between August 5 and August 9. Recent movements in PEPE derivatives markets, however, suggest that this could be a bear trap.
đ¸ Bulls Traders Standing Their Ground with $5.48M Leverage Positions
Despite PEPEâs 15% correction, there has not been a corresponding negative shift in short-term tradersâ sentiment. Coinglassâ Liquidation Map, which shows the value of active leverage positions around key price levels, highlights the current situation.
Currently, there is a concentration of leverage LONG positions around key price levels, underscoring the potential for a bear trap.
