- A whale’s leveraged PEPE long faces risk despite injecting $3.818M in margin, with liquidation set at $0.005219.
- PEPE’s volatility, driven by social sentiment, keeps the whale’s position unstable, risking market-wide panic if they exit.
- PEPECOIN, despite innovations, struggles with a 93.2% drop from its all-time high, reflecting broader market challenges.
Wu Blockchain reports that a whale address opened a 10x leveraged long position on PEPE via Hyperliquid on March 24. The entry price was $0.00814 per 1,000 PEPE. Currently, the position stands at $27.53 million, with an unrealized loss of $3.238 million. The liquidation price is set at $0.005219. Over the past 21 hours, the whale injected 3.818 million USDC in margin to prevent liquidation.
PEPE’s Price Volatility and Whale Influence
Besides the whale’s high-stakes move, PEPE has seen increased market activity. The price remains above $0.0000080, an essential threshold for potential gains as per Alva. However, PEPE’s price is highly volatile due to its meme coin nature. Unlike traditional assets, social sentiment drives its value. This exposes the market to unpredictable price swings, which could affect the whale’s position.
Moreover, Hyperliquid’s trading data reveals the ongoing risk. The whale’s efforts to avoid liquidation highlight the market’s instability. By consistently adding margin, they aim to support PEPE’s price. However, such a strategy has limits. If the whale exits, smaller traders could panic, leading to rapid declines. Consequently, PEPE remains vulnerable to extreme market reactions.
Broader Market Sentiment and Risks
Additionally, external factors could amplify the risk. Regulatory changes or shifting trader interest might push PEPE lower. The crypto market has already experienced a downturn, increasing the likelihood of further declines. Hence, if sentiment weakens, PEPE’s price could drop significantly.
Another concern is market manipulation. Large traders can influence trends through direct trades or sentiment shifts. The whale’s margin injections may prevent a sell-off for now. However, if they capitulate, the market could react negatively. Retail investors tracking whale movements might exacerbate instability.
PEPECOIN’s Evolution and Market Standing
PEPECOIN, originally launched in 2016, has undergone significant changes. Initially built on its own Proof-of-Work blockchain, it later migrated to Ethereum. This transition leveraged Ethereum’s smart contracts and decentralized exchanges. Over time, contributors launched various products, including PepeOS, Pepe Paint, Kek Bot, and BasedAI.
Despite these innovations, PEPECOIN faces market struggles. The price has dropped 8.14% in the past 24 hours, currently at $0.515. Its all-time high was $7.57 on April 11, 2024, marking a 93.2% decline. The token trades across seven exchanges, with LBank being the most active. Its market cap stands at $62.06 million, representing 0.00% of the total crypto market.
