- PEPE and WIF meme coins recorded differences in short trade positions, with PEPE’s short position liquidation higher than long position liquidation.
- PEPE’s short position liquidation stood at $1.07 million compared to $990,460 for long position, likely triggered by price fluctuations and declining trading volume.
- Elon Musk’s actions, such as changing his Twitter name to “Kekius Maximus” and profile picture to the Pepe-the-Frog meme, are attributed to PEPE’s 16% price surge on the last trading day of 2024.
The cryptocurrency market has witnessed a surprising imbalance in liquidation amid short traders of two popular meme coins, PEPE, originating from the Ethereum blockchain, and dogwifhat (WIF), based on Solana. The unexpected turn of events has left many traders stunned as the coins recorded significant discrepancies in their short trade positions.
How PEPE’s Short Sellers Suffered the Blow
Data from CoinGlass reveals that traders in short positions with PEPE experienced a greater extent of liquidation compared to those in long positions. The short position liquidation of PEPE was recorded at a considerable $1.07 million, outweighing the long position liquidation, which was a slightly lower $990,460.
This disproportionate liquidation pushed the total liquidation for PEPE to an impressive $2.06 million. The sudden liquidation was likely triggered by PEPE’s price fluctuation in the broader market, which saw the meme coin plummet to a low of $0.00002009 in earlier trading. This drop, paired with a substantial decline in trading volume, may have prompted the increased liquidation of short-position traders. Currently, the trading volume has drastically fallen by 31.72% to $1.52 billion, with PEPE trading at $0.00002083, according to CoinMarketCap data.
WIF’s Liquidation Scenario and Subsequent Rebound
On the other hand, WIF recorded a total liquidation of $1.7 million. Out of this, short position traders accounted for $672,160 in liquidation, while long position liquidation stood higher at $1.08 million.
However, WIF bounced back from a low of $1.949, spurred by a mild rally to its current price levels. The meme coin is currently being traded for $2.06, marking a 1.93% increase. Meanwhile, its volume has slightly gone up by 5.54% to $367.58 million.
Elon Musk’s Influence on PEPE’s Resurgence
As the year 2024 was coming to an end, WIF was listed among the top meme coins that experienced a drop in value. Specifically, the Solana-based coin saw approximately 12% of its market capitalization eradicated due to market volatility. Therefore, its recent price rebound has been welcomed warmly by investors and traders alike.
In contrast, PEPE displayed a positive performance on the last trading day of the previous year, soaring by a significant 16%. Market observers have attributed this spike to tech billionaire Elon Musk, who changed his ‘X’ to “Kekius Maximus“. Furthermore, Musk altered his profile picture to the popular Pepe-the-Frog meme, inciting a reaction from the crypto community.
Conclusion
This recent development in the cryptocurrency market, particularly among meme coins like PEPE and WIF, underscores the unpredictable dynamics within the sector. It also highlights the influential role of personalities like Elon Musk in shaping market trends and movements. As always, traders and investors are advised to conduct thorough research and exercise caution when making investment decisions in the volatile crypto market.
