Pepe Coin (PEPE), one of the largest meme coins in the sector, inked 6% gains in 24 hours, defying the broader crypto market sentiment. This time, the meme currency’s ascension isn’t directly tied to Spot markets: the trading volumes kept relatively low at roughly $350 million.
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On the other hand, the bigger breakthrough is witnessed on Derivatives markets: cumulatively, the regular PEPE coin leveraged contract and the 1000-times multiplied version pulled in nearly $900 million in volume, real-time Futures data from CoinGlass notes.
Big Liquidations Surface, Will PEPE Carry On Leapfrogging?
The gap between derivatives and spot turnover is particularly notable. Although hefty futures activity can accompany a sustained rally, it can also leave the price of PEPE coin extremely vulnerable to rapid reversals when leveraged positions are liquidated.
One of the contracts has a particularly lob-sided long versus short ratio, standing at 0.87. This means short-selling plays on PEPE coin’s price are significantly outnumbering the long ones, potentially resulting in a cascade of short-selling liquidations if the rally continues.
The other contract testified to a 0.99 long versus short ratio, but the bullish liquidation stats are brutal. Per CoinGlass, more than $501K out of $532.16K in 24-hour liquidations were bullish placements. This has pushed the frog-embossed coin further from the $0.00000444 resistance.
Pepe Coin’s (PEPE) further rally is likely if the meme coin sustains above the $0.00000452 level on the daily time-frame. The meme coin’s leap toward the two-year highs of $0.0000260, inked November, 2024 would require a more substantial volume boost, presumably in the billions of dollars constantly generated on a daily basis.
The current recovery remains substantially smaller than PEPE Coin’s 42% rally in September, when speculative momentum briefly carried the token above $0.00000555. The memecoin’s high Futures turnover depicts a story of speculative appetite without a clear conviction whether bulls or bears run the show in the near-term.
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