Short investors who took a position against Pepe Coin (PEPE) suffered greatly. The altcoin, which has been rallying since mid-April, led to a $900 million liquidation in the last run.
Altcoin investors who open short suffer the wrath of Pepe Coin
Pepe coin (PEPE) continues its rally despite all correction expectations, at least so far. Writing on CoinGecko, many analysts were warning of the impending collapse. However, Pepe Coin has strengthened over the past week and continues its momentum.
A look at the daily chart shows that the new meme coin has not slowed down for the past week. It quickly compensated for the correction on May 2 and 3. Then on May 4th, it lost a huge daily green candle reaching over 90%. Investors, who hoped that prices would decline from here, were once again defeated.
The warnings about Pepe Coin focused on the number of whales who bought it heavily in the hours after it was first released in mid-April. It was even claimed that the project team sold PEPE from 5 different wallets.
As Kriptokoin.com, we reported that large short positions against Pepe Coin were finished yesterday. According to the data, funding rates remain negative for perpetual futures linked to Pepe Coin. This shows the dominance of bearish positions in the derivatives market. A negative funding rate indicates that shorts are dominant and they are willing to pay longs to keep their shorts open.
An 80 percent price increase resulted in a loss of $900 million
Pepe Coin completed another rally of over 80% yesterday. This led to huge losses among investors who took short positions. CoinGlass data shows that shorts against PEPE have lost at least $11 million on several exchanges in the past 24 hours. Traders lost $5.5 million on the OKX crypto exchange alone. This is the highest figure among peers.
Traders lost $2.2 million on Huobi, $3.6 million on Bybit and a few hundred thousand more on BitMEX. All these exchanges started offering PEPE futures last week. Pepe losses are third after BTC and ETH futures liquidations, which generally generate the highest futures losses.
PEPE rises again to set new high
At the time of writing, Pepe Coin was up over 40% compared to the last 24 hours. According to data from CoinMarketcap, its new ATH is set at $0.000001766 after the last rally at $0.0000009165. Meanwhile, more than $407 million of PEPE was traded, with a market capitalization of $696 million.
The emergence of PEPE has somewhat mobilized many dissenting opinions, especially in the cryptocurrency ecosystem. While many initially saw the token as a scam, the few who entered early later made millions of dollars as they recorded the token’s rapid rise.
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