Meme Coin PEPE Hits New All-Time High As Shorts Get Rekt
04 Maio 2023 - 9:15AM
NEWSBTC
The incredible price rally of the meme coin PEPE continues.
According to Coingecko data, the frog token has risen to become the
third most popular meme coin, behind Dogecoin (DOGE) and Shiba Inu
(SHIB), with a market cap now at $688.5 million, leaving FLOKI
behind. In the ranking of all cryptocurrencies, PEPE is now ranked
#73, while FLOKI is ranked #123 ($332.5 million market cap).
Remarkably, PEPE initially retreated to $0.0000008383 yesterday,
but since then the price has skyrocketed more than 112% at times,
hitting a new all-time high at $0.000001794. The brutal price move
is likely due to a short squeeze, as tweeted by the data tracking
platform Laevitas. Pepe shorts adding more fuel to the fire.
pic.twitter.com/mdcS1n60iQ — Laevitas (@laevitas1) May 4, 2023
Funding rates are a measure of the payments that futures traders
have to make to keep their positions open. If the funding rate is
negative, it means that traders with short positions are required
to pay the funding rate to traders with long positions. The
opposite is true for positive funding rates. PEPE’s funding rates
were extremely negative before the short squeeze. This means that
short positions were dominant, which showed the dominance of
bearish positions in the derivatives market. Meanwhile, the spot
market was strong. Related Reading: Check Out This Shocking Pepe
Coin Versus Bitcoin Comparison Often, however, the market tends to
do the unexpected. When the overwhelming majority is bearish, it is
easy to wipe out liquidity, especially for larger players or market
makers. This is especially valid for smaller coins with low
liquidity and a comparably small user base. PEPE still only has
80,000 total addresses. Trader @htltimor added that some shorts are
being chased like there’s no tomorrow. “It’s fun (and was extremely
predictable),” says the trader, who shared the chart below and
shared another piece of advice: You can *sometimes* try the
stochastic < 20 on new coins in a lower TF (i.e. 1h) and if it
coincides with RSI oversold and logical levels and patterns and
volume profile, you can take a punt. Did not do that myself, as I
don’t trade meme coins. Another factor for the gigantic price
increase could be investor psychology. NewsBTC analyst Tony
Spilotro says: This is what price discovery is like in crypto. The
reason we see it more in fresh newly hyped coins is there aren’t
really any bag holders at a loss yet looking to dump at every
rally. So they just hold and hold and price go up. Related Reading:
PEPE Goes To The Moon: Meme Coin Listed On OKX, Binance Listing In
the Works? At press time, PEPE was trading at $0.000001673. As
NewsBTC reported, PEPE is still waiting for a listing on
Binance. During a recent AMA, CEO Changpeng Zhao said that the
listing process on Binance is “dictated by user interest.” So if
the trend continues, it should only be a matter of time before PEPE
is listed on Binance and experiences the obligatory “Binance pump.”
Investors should ask themselves, however, if this could be the top
signal for the meme coin. Featured image from Binance Feed, chart
from TradingView.com
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