Long

Cryptocurrency

Bitcoin

<div class="finbold">
 <p class="paragraph">The meme coin mania is back in the <a rel="noopener noreferrer nofollow" title="cryptocurrency" href="https://thebittimes.com/tag/cryptocurrency.html">cryptocurrency</a> market, and cryptocurrencies like PEPE show signals of being overvalued. This could foreshadow a long <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>, as suggested by increased open interest (OI), high funding rates, and accumulated liquidations downwards.</p>
 <p class="paragraph">Previously, the meme coin boom marked a local top, followed by a market <a rel="noopener noreferrer nofollow" title="crash" href="https://thebittimes.com/tag/crash.html">crash</a> and significant long-position liquidations. Should a similar pattern play out, this asset class is at the peril of suffering another hit despite positive social activity from influencers.</p>
 <p class="paragraph">As of this writing, PEPE has $736.69 million in open interest, ranking fifth on <em>CoinGlass</em>. This value represents 11% of the meme coin’s $6.39 billion market cap, trading at $0.0000151. Notably, PEPE’s OI is larger than the open interest on XRP, which has a $29.73 billion market cap.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Nvidia has 'near zero chance' of outperforming Bitcoin this decade, say experts <span class="self-center text-xs text-slate-500">11 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    'Severely undervalued,' says influencer on PEPE, but activity suggests otherwise <span class="self-center text-xs text-slate-500">1 hour ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Bitcoin whales show ‘strong buying force’ signaling bullish bias <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    3 cryptocurrencies to avoid trading this week <span class="self-center text-xs text-slate-500">3 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <p class="paragraph">Despite a drop of 37.82% in the $3.07 billion 24-hour volume, the market’s open interest is surging by 8.85% on the meme coin.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="137" src="https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp" alt="" class="wp-image-178368" srcset="https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp 1024w, https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp 300w, https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp 768w, https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp 1536w, https://cdn.thebittimes.com/images/2024/05/25/1e58eba3e87c52dbed50e5ad7ed6aeda.webp 1768w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   PEPE and XRP open interest and derivatives volume. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-pepe-funding-rates-and-potential-long-squeeze">PEPE funding rates and potential long squeeze</h2>
 <p class="paragraph">In particular, the consolidated exchanges’ funding rates for PEPE indicate an open interest weighted to long positions. Currently, long-position traders pay an APR of 52.66% to PEPE short-sellers as a mechanism to remedy derivatives imbalances.</p>
 <p class="paragraph">This high funding rate could accelerate a long squeeze to the meme coin or, at least, incentivize traders to close these bullish positions.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="515" src="https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp" alt="" class="wp-image-178369" srcset="https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp 1024w, https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp 300w, https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp 768w, https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp 1536w, https://cdn.thebittimes.com/images/2024/05/25/dc6a3842b0887bd00605d1ba38e491ee.webp 1834w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Funding Rate 30-day Heatmap, PEPE. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Moreover, the one-week liquidation heatmap shows a likely liquidation price target of $0.0000107 per token to leveraged PEPE traders. Therefore, the meme coin could be set for a long-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> <a rel="noopener noreferrer nofollow" title="crash" href="https://thebittimes.com/tag/crash.html">crash</a> if sentiment shifts from bullish to bearish.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="533" src="https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp" alt="" class="wp-image-178370" srcset="https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp 1024w, https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp 300w, https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp 768w, https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp 1536w, https://cdn.thebittimes.com/images/2024/05/25/b212817e48d8a040882251bcb9300811.webp 1824w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   1000PEPE Liquidation Heatmap, 1 week. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">A price drop to this target would result in 30% losses to traders buying PEPE at current levels.</p>
 <p class="paragraph">Still, the meme coin could continue upward if enough capital flows into it in the following days. Cryptocurrency traders and speculators must understand the volatile nature of these digital assets and act cautiously moving forward.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/long-squeeze-alert-this-cryptocurrency-could-crash-30-soon-tbt89798.html">https://thebittimes.com/long-squeeze-alert-this-cryptocurrency-could-crash-30-soon-tbt89798.html</a></p>

Long squeeze alert: This cryptocurrency could crash 30% soon

Table of Contents

TheBitTimes

Other articles published on May 25, 2024

Go Off Zero From Portfolio in Cryptocurrencies- Mike Novogratz

AVAX price prediction – Identifying the altcoin’s targets for 2024

Ethereum Supply Crunch Looms with ETFs Approval, Whale Activity

Google Faces Criticism for AI Overview Feature

Prosecutors Seek Up to 7 Years for Former FTX Executive Ryan Salame in Crypto Fraud Case

How To Buy New Crypto Before Listing

Join our free newsletter for daily crypto updates!