The recent liquidation heat chart for Pepe Coin’s USDT pair on Binance shows the precarious situation for leveraged traders.
As the chart shows, over $2 million worth of PEPE/USDT leveraged orders are on the verge of liquidation if the price rises to $0.0000222.
The heat map depicts multiple price levels where significant liquidation risk is clustered. The heat map demonstrates the volatile nature of highly leveraged trading in the cryptocurrency market.
This trading pattern highlights the risks associated with significant price volatility. Notably, even small market movements can trigger significant liquidations, exacerbating volatility.
The concentration of potential liquidations at different price levels suggests a layered defensive strategy by traders, with each side preparing to cut losses at different stages of the decline.
Traders and investors should be wary of these key price levels as they can trigger sharp price declines if liquidation begins.
This scenario highlights the need to use leverage cautiously in a market that is unpredictable and subject to rapid price changes.
PEPE Coin Breaks Above Trendline Resistance
PEPE shows a potential change in momentum from the previous downtrend, identified by a descending triangle pattern, which is usually bearish, on the PEPE/USDT trading pair.
However, the recent breakout above the descending trendline of the triangle has sparked interest in a possible bullish trend reversal.
This change occurs when the price breaks the trend line, accompanied by increased trading volume, signaling stronger buyer participation.
Holding above the $0.00002051 resistance could invalidate the bearish pattern. It would also set up PEPE for potential upside.
If the bullish momentum is sustained, the price could test the next resistance at $0.00002200 and above.
The appearance of a descending triangle pattern, combined with significant liquidations near these levels, suggests that PEPE may be on the verge of a more pronounced price move.
Market participants are watching the continued increase in volume as a confirmation of ongoing interest, which could push PEPE towards these higher targets in the short-term.
Such moves are important as they can trigger a flood of buy orders if the resistance level is broken completely.
Pepe the Whale's Accumulation
Over $2 million worth of leveraged Pepe orders could be at stake. Liquidation would then occur if the price rose to $0.0000222.
Despite the threat, Pepe has shown bullish signs. A notable breakout above a key trendline resistance could hint at an upcoming rally, sparking interest among traders and market watchers.
Recent trading activity has highlighted the influence of whales on the Pepe market.
A significant accumulation of whale wallets has been noted. One instance included a newly created wallet that acquired 309.6 billion Pepe. This wallet purchased PEPE for approximately $6.45 million at an average price of $0.00002082 from KuCoin.
This significant activity suggests the possibility of sudden market movements due to these large trades.
This accumulation is part of a broader pattern where influential market players are believed to be preparing for a bullish phase for PEPE.
If price holds above the trend line, supported by increased volume, it could push Pepe to test higher resistance levels. That would invalidate the bearish setup that is typically predicted from a descending triangle.
The market is now closely watching these developments, with keen attention on how the whales’ actions may align with technical forecasts to drive Pepe’s price trajectory in the near term.
