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On October 18, PEPE rose 4% after the memecoin dropped by 8% to $0.000007, showing volatility in the cryptocurrency market. On-chain data revealed that a whale trader, James Wynn, returned to the PEPE market after losing more than $53 million in liquidation.
According to the lookonchain analytics, all of Wynn's leveraged positions on the Hyperliquid decentralized exchange were sold out in the sell-off. Shortly after, Wynn reopened the new long positions at 10x leverage. These trades were again partially liquidated, and about $39.2 million $kPEPE remained, valued at about $271,000. This swift re-entering shows that there is continued speculation in the memecoin despite the recent losses.
The liquidation incident occurred during a period of increased volatility in the crypto markets. The fall of Bitcoin to below $109,000 started a massive liquidation of futures amounting to over $1.2 billion in just under 24 hours. Bigger issues with the government shutdown in the US also strained the mood of investors, leading to mass sell-offs in altcoins, including PEPE.
Technical analysis indicates that the market structure of PEPE is poor. The weekly chart indicates a bearish pennant breakdown, showing the token's three-week losing streak. The prices fell below the Bollinger middle of $0.00000718, which reflects the continued decline. Rebounds are not seen to be strong in the short term unless the buyers take back the position above the resistance levels.
The Relative Strength Index (RSI) had fallen to 38.84 compared to the 14-day average of 46.15, showing that the bearish momentum remains. The growing size of the Bollinger Bands is a sign that there is more volatility and the price is more vulnerable to sudden price surges.
If there is further selling, PEPE may test the support level of $0.0000060, which was last seen in March 2025. A bear market near this level may lead to a further correction to the level of $0.0000045, which will complete the bearish pennant. Traders can perceive the level as an essential test of stability in the market.
However, a long-time recovery above the $0.00000718 level may serve as a good indicator of recovery. To confirm further reversal of the trend, the bulls would have to push the prices beyond the resistance of $0.0000105.
