Short traders dealing with two of the top meme coins have recently been caught off guard due to a liquidation imbalance. The spotlight is on PEPE, which operates on the Ethereum network, and dogwifhat (WIF), found on Solana. These two coins have shown marked differences regarding their short trade positions.
The short sellers of PEPE have faced significant losses. Data from CoinGlass revealed that traders holding short positions for PEPE experienced higher liquidation figures than their long-position counterparts. In fact, the liquidation for short positions reached an alarming $1.07 million, while long positions suffered a liquidation of $990,460. Altogether, PEPE saw a total liquidation of $2.06 million. This surge in liquidation likely arose from fluctuations in PEPE’s price within the broader market. Just recently, this meme coin hit a low of $0.00002009.
Such a steep price drop, paired with a notable decline in trading volume—down 31.72% to $1.52 billion—likely spurred the increased liquidation among traders betting against the coin. As of now, PEPE is trading at $0.00002083, according to CoinMarketCap.
Meanwhile, on the WIF front, total liquidation was recorded at $1.7 million. Here, short-position traders saw liquidations tally up to $672,160, while long positions experienced higher liquidation totals at $1.08 million. WIF managed a rebound from a low of $1.949, growing thanks to a slight rally, with current trading levels at $2.06, marking an increase of 1.93%. Its trading volume also ticked upward by 5.54%, reaching $367.58 million.
Adding to the intrigue, tech billionaire Elon Musk appears to have played a role in PEPE’s rebound. As 2024 approached, WIF struggled, losing about 12% of its market capitalization amid market volatility. Thus, the increase in WIF’s price is a welcome sight for traders and investors alike. Conversely, PEPE’s recent surge—demonstrated by a dramatic 16% increase on the last trading day of the previous year—has been linked to Musk’s activities on X, where he updated his profile to “Kekius Maximus” and switched to a Pepe-the-Frog meme as his profile photo, sparking excitement throughout the crypto community.
In a market where sentiment swings with every tweet and trend, it’s clear that short traders of both PEPE and WIF are reeling from unexpected twists. Whether in the bullish momentum or potential pitfalls, every move in this playful market can be a rollercoaster of emotions. Keep an eye on these coins; volatility is always just around the corner.
