PEPE, the poster boy of this year’s meme coin season, is down by almost 50% from its all-time high. Is this the end of its rally?
Since last month, meme coins have taken the market by storm. While PEPE has given over a 1000% price rise in less than a month, investors need to stay cautious of high volatility and various scams.
Market Volatility Washed Away PEPE Traders’ $7 Million
As Bitcoin dropped below $28,000, trades worth over $144 million got liquidated in the past 24 hours. According to data from Coinglass, PEPE traders lost $7.23 million to liquidation.
It became the third-highest cryptocurrency based on liquidations in the past 24 hours, followed by Bitcoin’s (BTC) $30 million and Ethereum’s (ETH) $27 million liquidations.
Lookonchain tweeted that a whale started buying $2.94 million worth of PEPE tokens last Friday. As of writing, the value of their PEPE holding is down to $2.24 million. That means the whale is sitting on an unrealized loss of over $700,000 in three days.
PEPE Token Down by 50%
The large liquidations and unrealized losses came as PEPE crashed by over 50% from its Friday all-time high of $0.00000449730, currently trading at 0.00000223252. Its next support is at 0.00000192478, which coincides with the 10-day Exponential Moving Average (EMA).
If the meme coin breaks this support, it might indicate a reversal in trend.
However, it is worth noting that few whales largely control the supply of meme coins. Due to the huge concentration of supply, the volatility can be highly unpredictable. Investors must take precautionary measures and follow risk management while trading meme coins.
In a separate development, Santiment reported that ETH’s active deposits are at the highest level since Nov. 2021. The on-chain analysis platform believes that the spike in ETH’s active deposits can be due to traders converting PEPE profits into ETH.
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