PEPE Long Liquidations Hit $7.7M as Price Drops 14% in a Week

PEPE‘s recent price decline has led to a wave of liquidations for traders holding long positions in the

meme coin

If the downtrend continues in the short term, PEPE long holders may face further losses. Heres why.

PEPEs Struggling Price Leads to $7.7M in Liquidations

PEPEs price has fallen consistently over the past few days. The meme coin trades at $0.000017 at press time, noting a 14% price fall in the past seven days.

The price decline has sparked a wave of PEPE long liquidations in the futures market, totaling $7.73 million since January 6, according to Coinglass data.

PEPE Total Liquidations.

Liquidations happen in an asset‘s derivatives market when its price moves against a trader’s position, forcing the position to close due to insufficient funds to sustain it.

Long liquidations occur when traders betting on a price increase are compelled to sell the asset at a lower price to cover their losses. This typically happens when the assets value drops below a critical level, pushing long traders to exit the market.

Additionally, PEPEs open interest has decreased in recent days. This highlights the low trading activity around the meme coin and contributes to its ongoing price decline. As of this writing, it is at $503 million, falling by 19% in the past week.

PEPE Open Interest.

Open interest refers to the total number of outstanding contracts or positions in a particular assets derivatives market that have not yet been settled. When it falls, it indicates that traders are closing their positions, signaling reduced market participation.

PEPE Price Prediction: Bearish Momentum Persists

PEPE continues to trade below a descending trendline on a daily chart. This pattern is formed when an assets price makes a series of lower highs, indicating a downward trend.

When an asset trades below this line, it signals sustained bearish momentum and indicates that further downward pressure on the price is likely. If this trend continues, PEPEs price could drop to $0.000015.

PEPE Price Analysis.

Conversely, if buying pressure gains momentum, the meme coins price could break above the descending trendline, which forms resistance at $0.000020.