PEPE warned of a possible big crash 🤯💥📈
Pepe (PEPE) has been the top gainer in the cryptocurrency market, with its price rising significantly on both a daily and weekly basis. But there is a warning:
PEPE could face an extended squeeze this week, which could cause its price to plummet.
While the rise in PEPE prices has excited early investors, it has also led to many traders betting on its rise in the derivatives market.
This increased PEPE's open interest to more than $510.35 million, representing 16.4% of its $3.11 billion market capitalization.
24-hour PEPE derivatives volume also rose, reaching $6.70 billion, up 81% from the 41% daily price jump to $0.00000755.
The PEPE liquidation heat map suggests a possible collapse in the near future.
Traders post collateral for each new long position they take, agreeing to sell if the price falls below a certain level.
If PEPE exceeds these levels, leading to liquidation, it could lead to a series of sell-offs and an 85% drop to $0.000001.
Meme coins such as PEPE typically experience such drops after periods of excitement. However, the future of PEPE depends on how much money flows into it in the coming days.
Cryptocurrency traders and meme coin speculators need to remain vigilant due to these potential risks.
