Whale Buys $5 Million of PEPE, Bullish Signal or Market Risk?

WikiBit 2024-11-07 04:53

The sentiment across the cryptocurrency market has significantly changed as pro-crypto Donald Trump is again elected as the president of the United

Source: Trading View

As of now, PEPE is on the verge of breaking this bullish pattern and also trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.

On-Chain Metrics

Despite this bullish outlook, on-chain metrics suggest a mixed sentiment among traders. According to the on-chain analytics firm Coinglass, PEPEs Long/Short ratio currently stands at 0.95, indicating a bearish sentiment among traders.

Additionally, its open interest has jumped by 7% and has been falling continuously. This declining open interest suggests the liquidation of traders positions after a notable upside rally or it could also indicate profit booking.

A combination of rising open interest and a Long/Short ratio below 1 signals a bearish outlook, and traders commonly follow this pattern when building short positions.

Disclaimer：

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