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- More than 77 percent of Pepe coin’s $6.7 million liquidations in the past 24 hours were short traders.
- The meme coin enjoys a holder base of more than 83.5k holders with most Dogecoin and Shiba Inu holders diversifying into Pepe.
Early Pepe (PEPE) holders are counting huge profits after the frog-themed meme coin broke out to reach a new ATH on Thursday. As the Pepe hype attracted more FOMO traders, the meme coin climbed to the 75th most valuable digital asset by market capitalization. Moreover, Pepe enjoys more than 83k holders who have made over half a million transactions according to on-chain data.
Pepe coin, which is less than a month old, has outperformed veteran meme coins like Dogecoin and Shiba Inu. In the past seven days, Pepe coin’s value has risen by more than 600 percent, after Thursday’s 63 percent spike. Trading around $0.00000158 after hitting an ATH of around $0.00000168, Pepe coin has gained more than 2,674 percent from its all-time low recorded.
Pepe and The Market Outlook
As a meme coin, Pepe is largely controlled by speculative traders. Furthermore, the Pepe developers intended to build a coin that could outperform the dog-themed meme coins that have dominated the industry due to the influence of Elon Musk. According to data from DEXtools, Pepe coin recorded 6,500 buys compared to 3,300 sales in the past 24 hours.
The Ethereum-based meme coin has attracted huge trading volume on both centralized and decentralized exchanges. According to aggregate market data from Coingecko, Pepe coin recorded a total of $228,187,012 in CEX volume compared to $119,158,569 from DEXes.
As Pepe’s popularity rises, analysts forecast it will eat away that of Dogecoin and Shiba Inu. Moreover, the coin has a lower market cap with a rising holder base, which is considered a characteristic of bullish sentiment.
We noticed an early buyer of $SHIB also bought $PEPE and $WOJAK.
The SmartMoney started buying $SHIB at a very low price on Jan 30, 2021.
Bought 188.6B $SHIB with $96.5K and sold 95.3B $SHIB for $1.18B.
Currently holds 92.3B $SHIB($929K) and made ~$2M on $SHIB pic.twitter.com/sjMAZJf1J4
— Lookonchain (@lookonchain) May 4, 2023
Having been in the trading market for less than a month, crypto analysts are left to study short-term time frames to understand the price action. A short squeeze occurred after the Pepe hourly price broke out of the recent pullback. Now that the meme coin is in price discovery mode, psychological resistance is left at play.
For instance, meme coins are known for returning 10X or 100X in parabolic rallies. As a result, early Pepe holders could be looking at the next 10X or 100X to take some profits.
Is Liquidity an Issue?
Currently, Pepe is heavily reliant on Ethereum and its DEXes for liquidity. Early Pepe investors have been cashing out their profits through Ethereum as new investors provide liquidity. Nevertheless, notable Ethereum whales have been entering the Pepe trade thus guaranteeing liquidity for small retail traders.
According to Nansen data, Uniswap’s version (v)2 and v3 liquidity pools for PEPE-WETH have been the most active contracts in the past seven days, recording over 82,750 and 72,950 transactions, respectively.
