Top On-Chain PEPE Short Posts $133,000 Unrealized Loss

The top on-chain short position on meme coin PEPE has posted an unrealized loss of $133,000, signaling bearish sentiment among traders. This loss is attributed to the account's short exposure of roughly $120,000 on PEPE, with an average entry price of $0.007. The position has seen a decline in unrealized gains due to recent market fluctuations.

The broader market environment shows mixed momentum. While some meme coins have surged this week, others face downward pressure from short sellers. PEPE's recent price behavior highlights the volatility inherent in the meme coin sector, where sentiment can shift rapidly based on market dynamics and institutional involvement.

Institutional demand remains a key factor. Bitcoin and Ethereum ETFs have attracted significant inflows in early 2026, with over $1.5 billion flowing into these funds since the start of the year. This institutional interest has helped stabilize prices for major cryptocurrencies, though traders remain cautious as markets consolidate.

Why Did This Happen?

The short position on PEPE is part of a broader trend where large whale accounts are actively managing their exposure to high-risk meme assets. The "Meme Army Front" has been gradually building a short position in PEPE, with an average entry price of $0.007. The whale has also taken significant short positions in other meme coins like LIT and ASTER.

This short activity contrasts with a separate whale that has suffered heavy losses over the past year. That whale's total position value dropped from $25 million to $2.33 million, with cumulative losses exceeding $42.7 million. The shift in market positioning suggests growing uncertainty among investors in the meme coin space.

How Did Markets Respond?

Bitcoin and Ethereum prices have shown a mixed performance this week. Bitcoin reached $95,000 on Monday, but has since retreated to around $93,000. Ethereum has also seen a pullback after a period of steady gains, with traders eyeing key support levels.

Retail and institutional demand for Bitcoin ETFs have surged, with $697 million in inflows recorded on Monday alone. This trend supports a bullish outlook for Bitcoin, though traders are cautious about potential profit-taking in the near term.

XRP has also seen increased interest, with spot and futures ETFs attracting significant inflows. XRP ETFs recorded $46 million in inflows on Monday, up from $13.6 million the previous week. The asset's derivatives market has also seen a rise in open interest, averaging $4.55 billion.

What Are Analysts Watching Next?

Market participants are closely monitoring short-term price action and on-chain activity for signs of further consolidation or breakout. The $93,000 level has acted as a key support for Bitcoin, and a break below this could trigger further selling pressure.

Analysts are also watching how ETF inflows and regulatory developments impact the broader market. Morgan Stanley recently filed for a spot Bitcoin ETF, which could add more institutional capital to the market. Meanwhile, Senate negotiations on a new crypto bill could shape future market conditions by introducing new regulatory standards.

PEPE's short position remains a focal point for traders, with the $0.007 level serving as a key technical reference. If the price continues to underperform, the short position could see further gains, reinforcing bearish sentiment among traders.

Investors are also watching for signs of renewed buying interest in the meme coin sector, particularly in assets like Dogecoin and Shiba Inu, which have seen recent gains. A broader recovery in the sector would depend on renewed retail and institutional participation, as well as favorable regulatory developments.