PEPE Running DOGE Playbook As The 2 Memes Get Exposed To High Leverage

Dogecoin (DOGE) and PEPE Coin: High Leverage Exposure on Trading Platforms

Dogecoin (DOGE) and PEPE coin, prominent memecoins, have faced significant leverage exposure on trading platforms. This has placed both coins at pivotal junctures, surrounded by liquidation pools that could trigger sharp price movements in any market direction.

DOGE and PEPE Exposed to High Leverage on Exchanges

Recent price action for DOGE indicates that aggregated liquidation levels have had a significant influence. The coin has navigated through two major liquidation clusters in the past month.

The first cluster, near $0.50, poses a significant risk to shorts. This level has acted as a potential ceiling, exposing short-sellers to high liquidation risks should prices rally.

Conversely, a second key liquidation zone below $0.35 primarily affects long positions. If breached, this lower boundary could trigger a cascade of sell-offs and further depress DOGE's value.

Notably, the liquidation map shows a slight predominance of long positions, suggesting an optimistic bias among traders. However, substantial liquidations are inevitable, regardless of directional movement towards $0.50 or below $0.35. Breaches of these levels could result in significant price fluctuations and potential trading opportunities.

PEPE coin has also experienced substantial liquidation events recently. A sharp price increase triggered numerous long position liquidations, with the main concentration of liquidations positioned below the then-current price.

The heatmap indicates intense activity levels during these transactions. Additionally, the accumulated liquidation levels show a dominance of long liquidations, especially post the price surge. This creates a dominant pool of long liquidations below the current price, leading traders to be cautious in establishing new long positions at these levels.

PEPE v DOGE Coin Price Action

Comparative analysis between PEPE and DOGE coin reveals striking similarities, making PEPE a potential standout in this cycle. Both coins have shown mirror-like patterns during their respective cycles, underscoring a potentially repetitive meme coin trend.

DOGE's pronounced rally peaked before a consolidation phase that fueled a more substantial price spike, surpassing previous highs. PEPE has followed this trajectory, with its initial rise mimicking DOGE's early movements. This suggests that PEPE could potentially emulate DOGE's success.

PEPE's initial buildup within a defined price range followed by a breakout indicates a shift to rapid price appreciation. Notably, PEPE's pattern from November to December closely resembles DOGE's from a previous cycle, which resulted in exponential growth.

If PEPE continues to follow this path, it could achieve new highs, much like DOGE coin did. The anticipation is that PEPE could replicate and potentially exceed DOGE's path, provided that interest in memecoins continues to surge.