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The meme coin frenzy found its place in the market once again after March, with cryptocurrencies like PEPE continuing to show extreme bullish signals. This situation, indicated by increasing open interest (OI), high funding rates, and accumulated liquidation levels in the lower region, could signal a long squeeze. In the past, the meme coin surge led to a local peak, followed by a market crash and significant long position liquidations. A similar situation could lead to a decline in PEPE.
Current Status of PEPE
As of the time of writing, PEPE stands out with an open position of $736.69 million and continues to rank fifth on CoinGlass. This value corresponds to 11% of the meme coin’s market cap, which has risen to $6.39 billion at a level of $0.0000151. On the other hand, PEPE’s OI indicates a market cap of $29.73 billion, which is larger than the open interest in XRP.
Meanwhile, PEPE’s 24-hour trading volume decreased by 36.82%, falling to $2.2 billion. Additionally, the market’s open position in the meme coin increased by 8.85%.
The Future of PEPE
During all this, consolidated exchanges’ funding rates for PEPE indicate an open interest weighted towards long positions. Currently, traders taking long positions are paying an APR of 52.66% to PEPE short position traders to prevent potential imbalances in derivative exchanges.
This outlook could prepare for a long squeeze on the meme coin in the coming days or at least force traders to close their current bullish positions.
Additionally, PEPE’s one-week liquidation heatmap indicates a possible liquidation level of $0.0000107 for PEPE traders conducting futures transactions. Accordingly, if the outlook for PEPE shifts from bullish to bearish, the meme coin could host a long-term bearish sentiment.
A price drop towards the mentioned target could cause investors who bought PEPE at current levels to incur a 30% loss.
Nevertheless, if sufficient cash inflow is provided in the future, the meme coin could continue its upward price movement. Therefore, it would be healthier for investors and their investments to examine all market conditions and movements before making decisions.
