Pepe Drops 9% as Whale Selling and Liquidations Fuel Market Panic

Pepe (PEPE) has experienced a significant price correction, dropping 9% over the past seven days, which has led to growing concerns among traders and investors. The recent decline has outperformed most other meme coins during the same period, casting doubt on the broader market sentiment surrounding the token. Whale activity has intensified the panic, as large holders have been offloading their positions, with some trades appearing to be forced liquidations rather than voluntary exits [1].

One of the most notable cases involves high-profile trader James Wynn, who was recently liquidated out of a long PEPE position, resulting in a loss of approximately $180,000. Wynn, known for his aggressive trading strategies and high-risk moves, has previously faced similar outcomes, including a $60 million loss in May from a liquidated Bitcoin position. This pattern raises concerns about the sustainability of speculative trading in the meme coin space, particularly when key traders face repeated exits [1].

The open interest in PEPE has also sharply declined, falling from a peak of $1 billion on July 22 to significantly lower levels following the token's 21.4% drop from $0.000014 to $0.000011. This drop coincided with a "death cross" on the 9-day and 21-day exponential moving averages (EMAs), signaling a bearish trend in technical analysis [1]. Analysts are now watching whether the token will break below the critical support level of $0.00001050, which could potentially push the price down to as low as $0.00000850.

While the bearish indicators are strong, the market remains in a bullish state of momentum, making short-selling at this juncture risky. Traders are advised to wait for a confirmed breakout below $0.00001050 before considering short positions. This caution is due to the unpredictable nature of meme coins, where sentiment can shift rapidly based on social media activity and influencer commentary [1].

In response to the growing volatility in the meme coin market, a new platform called CoinFutures has emerged, offering users the ability to take directional positions on cryptocurrencies without direct ownership. The platform supports high leverage—up to 1000X—and includes features such as stop-loss and take-profit tools, enabling traders to manage risk more effectively [1]. CoinFutures plans to add support for meme coins like PEPE in the near future, further expanding its appeal to traders looking to capitalize on short-term price swings.

The ongoing debate over PEPE's price trajectory highlights the speculative nature of meme coins and the risks associated with concentrated positions held by large investors. While the current technical indicators suggest a possible deeper correction, the market's momentum and emotional trading behavior mean that a reversal could still occur before such levels are reached. Investors and traders are advised to monitor both fundamental and technical developments closely as the market evolves [1].

Source: [1] Pepe Price Prediction: Whale Selling Triggers Huge Drop – Panic Is Spreading Fast

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