PEPE’s recent price decline has triggered significant liquidations for traders holding long positions in its futures market. Over the past three days, $7.7 million worth of long positions were liquidated, reflecting substantial losses for bullish traders. If the downtrend persists, PEPE investors may face further challenges.
PEPE’s Price Decline Sparks $7.7M in Liquidations
PEPE has struggled amid a broader market downturn, currently trading at $0.000017, down 14% over the past week. This drop led to widespread long liquidations—where leveraged positions are forcibly closed due to insufficient collateral.
Key Factors Driving Liquidations:
- Falling Open Interest: PEPE’s open interest (outstanding futures contracts) dropped 19% to $503 million, signaling reduced trader participation.
- Descending Trendline Resistance: PEPE trades below a critical downward trendline, indicating sustained bearish momentum.
PEPE Price Prediction: What’s Next?
Bearish Scenario:
- A continued downtrend could push PEPE to $0.000015, a key support level.
- Low open interest and liquidations may fuel further declines.
Bullish Reversal Potential:
- Breaking above the $0.000020 resistance could shift momentum.
- Increased buying pressure would be needed to reverse the trend.
FAQs
Q: Why are PEPE long positions being liquidated?
A: Liquidations occur when PEPE’s price drops, forcing traders to exit leveraged positions due to insufficient funds.
Q: What does declining open interest mean for PEPE?
A: It suggests waning trader activity, often preceding price drops due to reduced demand.
Q: Could PEPE recover soon?
A: A break above $0.000020 could signal recovery, but current trends favor caution.
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Market Disclaimer: This analysis is informational only. Always conduct independent research before trading.
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