Why is $PEPE optimistic about PEPE?

When other coins are skyrocketing, why isn't PEPE rising?

Everyone thinks this coin is going to fail, let me analyze it:

First, the long-short ratio is 3 to 1, with too many long positions, and among them, there are large long positions from JAMES. In this case, the market maker will lose money if they push the price up;

Since the overall market is rising, the market maker cannot (massively sell off) cause a big drop that would liquidate long positions; that would be too obvious, and no one would play anymore; however, they can (sell off a small amount) suppress the price from rising too much; aligning with the overall upward trend of the market;

When other coins are rising for many days, and PEPE only rises a little, many retail investors with long positions will not be able to take profits, leading them to close their positions and open long positions in other coins to chase profits; at this point, the long positions will decrease significantly;

Secondly, when the overall market dips slightly, PEPE drops more, and this aligns with the market trend, making the decline seem reasonable; at this time, retail investors can’t sit still, they either cut losses on their long positions or get liquidated, or switch to short positions, with a portion of determined short investors ramping up their bets;

After this continues for some time, the number of short positions will be much greater than long positions, and then a massive price surge will occur, directly liquidating the short positions. Even if they didn’t catch JAMES's long positions, the overall liquidation of short positions will earn the market maker more, so even if they lose on long positions, overall it will be a big profit, and the market maker will also gain significantly from spot trading.

The current stage is that the long-short ratio is gradually changing from 3 to 1 to 2 to 1, slowly to 1 to 1, and even to 0.5 to 1; at this stage, there will be no large upward movement, but when it reaches 0.5 to 1 or lower, there will be a massive surge (potentially rising dozens of points in a day), directly crushing the shorts.

Of course, this is not to encourage you to go long; the more money you put into long positions, the more time the market maker needs to operate to increase the number of short positions. Thus, long positions may take a long time to see profits, and the market maker might even attempt to shake off the long positions with small price movements.

Therefore, it is generally difficult to make money from contracts; whatever is earned will eventually be lost, but contracts are like nutrients, as long as there are continuous investments, they can stimulate spot prices to rise.

Spot holders just need to be patient, the PEPE starting with 2 is not far off.