In the past week, the meme coin PEPE in the cryptocurrency market has experienced a significant fall, with a cumulative decline of 9%. This trend has sparked heated discussions among investors about the future prospects of PEPE.

Compared to other meme coins, PEPE's performance is relatively weak, which has led market participants to start questioning its long-term value. However, whether the current price trend indicates a deeper market weakness or is just a normal pullback before a new round of increases remains an unresolved question.

Analysis from CoinDesk Research shows that large investors have recently continued to reduce their holdings of PEPE. It is worth noting that not all sell-offs are due to active decisions. Some investors may have exited the market due to liquidation or passive closing of positions, rather than completely losing confidence.

Trader James Wayne, who gained fame for his early investment in PEPE, recently closed his long position. This decision has attracted widespread attention in the market, as Wayne had bet on PEPE when it was still relatively unknown, and he reaped considerable profits as a result.

Due to the latest round of PEPE's correction, long positions worth a total of 207 million USD have been severely impacted, resulting in a loss of about 180,000 USD in the short term. Wayne, known for his aggressive style as a high-risk trader, has had a tumultuous investment journey. In May of this year, he reportedly suffered huge losses due to being forced to liquidate a 1 billion USD Bitcoin position, with losses rumored to be as high as 60 million USD.

Currently, the open interest in PEPE has significantly shrunk, a phenomenon that began on July 22. This market trend has sparked various speculations among investors regarding the future trajectory of PEPE. Some believe this may be a signal of the market peaking, while others view it as a buildup before the next round of increase.

In this market environment, investors need to remain cautious, closely monitor market trends, and make investment decisions based on their own risk tolerance. Regardless of how PEPE performs in the future, its performance will continue to be an important indicator in the encryption market.