PEPE is finally following in the footsteps of Dogecoin considering its breakout over the past 2 days. The memecoin king previously fell sharply and skyrocketed to a new 2024 high.
It is only a matter of time until PEPE and other companies in the group experience similar results due to liquidity rotation.
PEPE hit its previous all-time high (ATH) of $0.00001725 on May 27 but has struggled to sustain its bullish momentum since then.
To put that into perspective, its lowest price this month was $0.00000771 on November 4. Since then, it has increased by around 233% to a high of $0.00002597 in the last 24 hours at the time of writing.
The event officially marked a new ATH for the frog-themed memecoin. PEPE was trading at $0.00002224 at press time.
The most recent rally was overbought, which means the price could be susceptible to selling pressure.
Strong demand for PEPE in derivatives market ahead of price rally
The latest PEPE rally was marked by strong demand in the derivatives segment. Futures open interest spiked to $281.84 million in the past 24 hours. This is the highest open interest ever recorded for the memecoin.
The increase in open interest has been ongoing since September but the latest spike confirms the increase in demand from the derivatives segment.
Now that PEPE price has hit a new ATH, bearish expectations are back. Shorts remain dominant over the past 24 hours, confirming that a large number of traders anticipate selling pressure due to profit taking.
Memecoin has seen a slight decline over the past 24 hours. However, this does not necessarily mean that it may not rise further. Such an outcome could lead to increased liquidations.
Speaking of which, liquidations are almost flat according to Coinglass. Long liquidations across all exchanges in the past 24 hours peaked at $1.43 million while short liquidations were slightly higher at $1.44 million.
PEPE Large Holder Flow Profile
The cash flows of large PEPE holders show that whales were very active participants in the latest PEPE price surge. However, they also played both sides and may have signaled the next move.
Large holder inflows spiked from 1.81 trillion PEPE on November 2 to 39.66 trillion PEPE on November 13. Meanwhile, large holder outflows spiked from 1.6 trillion tokens on November 1 to 40.77 trillion tokens on November 13.
Large holder money flow data shows there has been more whale profit-taking over the past 24 hours than buying pressure.
There is still a large amount of tokens flowing into large holding addresses, which suggests we could continue to see more price increases in the coming month, especially as the bull market heats up.
