PEPE Coin Surges 6% Amidst High Derivatives Volume and Liquidation Risks

Pepe Coin (PEPE), one of the prominent meme coins in the cryptocurrency sector, achieved a notable 6% gain over the past 24 hours, bucking the broader market trend. However, this price surge is not primarily driven by spot market trading, which remained relatively modest at approximately $350 million.

The real momentum lies in the derivatives markets. According to real-time futures data from CoinGlass, the combined volume of the standard PEPE coin leveraged contract and its 1000x multiplied variant reached nearly $900 million. This significant divergence between spot and derivatives volume highlights a highly speculative trading environment.

Big Liquidations Surface, Will PEPE Carry On Leapfrogging?

The disparity between derivatives and spot turnover is striking. While robust futures activity can support a sustained price rally, it also exposes the asset to extreme volatility. A sharp reversal could trigger widespread liquidations of leveraged positions, putting the PEPE price under severe pressure.

One of the key futures contracts shows a heavily skewed long-to-short ratio of 0.87, indicating that short sellers outnumber long traders. If the upward momentum persists, this setup could trigger a cascading wave of short-covering liquidations, further accelerating the price climb.

Meanwhile, the second contract recorded a 0.99 long-to-short ratio, yet the liquidation figures paint a starkly bullish picture. Data from CoinGlass reveals that out of $532,160 in 24-hour liquidations, over $501,000 were bullish positions. This heavy liquidation of bullish bets has pushed PEPE coin away from the $0.00000444 resistance level.

For PEPE Coin to sustain its upward trajectory, the price must hold steady above the critical support level of $0.00000452 on the daily chart. A move toward the two-year high of $0.0000260, reached in November 2024, would require a substantial surge in trading volume, potentially expanding into the billions of dollars daily.

Comparatively, the current recovery is still far smaller than the massive 42% rally seen in September, which briefly pushed the token above $0.00000555. The high turnover in PEPE’s futures markets suggests a high level of speculative interest, though it remains unclear whether bulls or bears will maintain control in the immediate term.

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