According to data from Coinalyze, the current ratio of long (long) to short (short) positions for 1000PEPE is:
• 5 minutes: 69.49% longs vs 30.51% shorts (ratio 2.28).
• 30 minutes: 69.35% longs vs 30.65% shorts (ratio 2.26).
• 1 hour: 69.35% longs vs 30.65% shorts (ratio 2.26).
• 4 hours: 69.35% longs vs 30.65% shorts (ratio 2.26).
• 1 day: 70.22% longs vs 29.78% shorts (ratio 2.36).
a high proportion of longs (over 70% on some timeframes) can be a signal for a price decrease for two main reasons:
1. Liquidations of overloaded long positions:
• If the market is overloaded with longs, market makers and large players can push the price down to trigger stop-losses and liquidate positions.
• This triggers a cascade of long liquidations, exacerbating the decline.
2. Funding Mechanism (Funding Rate):
• When there are more longs, the funding (funding rate) becomes positive.
• This makes holding a long position expensive, which may cause some traders to close positions, increasing downward pressure.
A high proportion of longs increases the likelihood of a price decrease.
If the price breaks 0.0083000, a rapid decline to 0.0082500 – 0.0082200 may follow due to liquidations.
