Dogecoin (DOGE) and PEPE coin, two prominent memecoins, faced exposure to high leverage on trading platforms.
Both were at a pivotal juncture, surrounded by liquidation pools that could precipitate sharp price fluctuations in any market direction.
DOGE and PEPE Exposed to High Leverage on Exchanges
Price movement for Doge coin indicates that aggregated liquidation levels significantly influenced it. During the past month, DOGE coin found itself navigating through two major liquidation clusters.
The first, more substantial one, was positioned near $0.50, marking a crucial zone for shorts. The level acted as a potential ceiling, where short-sellers faced high risks of liquidation as prices rallied.
Conversely, a second key liquidation zone emerged below $0.35, primarily affecting long positions. This lower boundary, if broken, could trigger a cascade of sell-offs and further depress it’s value.
Notably, the liquidation map showed a slight predominance of long positions, suggesting an optimistic bias among traders.
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However, irrespective of directional movement—whether upwards towards $0.50 or downwards past $0.35—substantial liquidations were inevitable.
Breaches of these levels could result in significant price fluctuations and potential trading opportunities.
As for PEPE coin, substantial liquidation events occurred recently. There was sharp price increase which subsequently triggered numerous long position liquidations.
The main concentration of these liquidations was positioned below the then-current price. Many traders had established long positions anticipating further price increases.
However, the sudden surge led to a contrary effect—activating stop losses and liquidating positions en masse. The heatmap indicated intense activity levels during these transactions.
Additionally, the map showed the accumulated liquidation levels of long versus short positions. The long liquidations dominated, especially post the aforementioned pump.
This left a dominant pool of long liquidations below the current price. Traders could be cautious or hesitant in establishing new long positions at these levels.
If PEPE coin price were to decline towards these liquidation clusters, further sell-offs could be anticipated, potentially driving the price even lower.
PEPE V DOGE Coin Price Action
The comparative analysis between PEPE and DOGE coin from the previous cycle revealed striking similarities, making PEPE the standout in this cycle.
Both showed patterns during their respective cycles appeared almost mirror-like, underscoring a potentially repetitive meme coin trend.
DOGE’s pronounced rally peaked before undergoing a notable consolidation phase, which later fueled a more substantial price spike, surpassing previous highs.
Similarly, PEPE followed this trajectory, with its initial rise mimicking DOGE’s early movements, suggesting that PEPE could potentially emulate DOGE coin’s success.
PEPE indicated an initial buildup within a defined price range, which was closely followed by a breakout. This breakout phase marked a shift from accumulation to rapid price appreciation.
Notably, PEPE around November to December closely resembled DOGE’s pattern from its previous cycle, which had resulted in exponential growth.
If PEPE continued to follow this path, it could achieve new highs, much like DOGE coin did, turning into the “king of this cycle.”
The anticipation was that PEPE would not only replicate DOGE’s path but could potentially exceed it, provided the interest in memecoins continued to surge.
