PEPE Faces Long Squeeze Warning: Risk of Massive Crashđ€Żđ„đ
Pepe (PEPE) has emerged as the top gainer in the cryptocurrency market, experiencing a significant surge in both daily and weekly performance. However, caution looms as PEPE could encounter a long squeeze this week, potentially leading to a sharp price decline.
Amidst meme coin euphoria, PEPE's remarkable price surge has attracted early investors, yielding substantial returns. This frenzy has prompted cryptocurrency traders to open numerous long positions in the derivatives market, amplifying PEPE's open interest to over $510.35 million, representing 16.4% of its $3.11 billion market cap.
PEPE has witnessed a notable increase in its 24-hour derivatives volume, reaching $6.70 billion, an 81% surge compared to its 41% daily price increase to $0.00000755.
The liquidation heatmap for PEPE indicates a potential crash on the horizon. Traders deposit collateral assets for each new long position, agreeing to a liquidation price below the current zone. Should PEPE drop above these levels, triggering liquidation events, it could result in a cascade of sell-offs, potentially leading to an 85% crash towards $0.000001.
Historically, such retracements are common for meme coins after periods of euphoria. However, PEPE's trajectory depends on the influx of capital in the coming days. Cryptocurrency traders and memecoin speculators must remain vigilant amidst the potential risks.$PEPE
