PEPE's price plummeted over 60% in minutes during the largest ever liquidation event in crypto history. As the dust settles, an analyst pinpoints critical levels for a major rebound. The ultimate target might astonish even the most bullish traders.
The scale of liquidations recorded on Friday exceeded all previous records. Data from Coinglass reveals that some exchange platforms saw up to 96% of their liquidations affecting long positions. This phenomenon spared no trader, regardless of the leverage level used.
According to MMBTtrader, this purge wasn’t an accident but a necessary market reset. The analyst points out that the large red candle that sent PEPE into a downward spiral bears the hallmarks of orchestrated market manipulation. This theory is gaining traction in the crypto community, especially as many altcoins lost up to 80% of their value on a single candle.
Despite the violent movement, the analyst affirms this correction was expected. The pace of the decline certainly surprised traders, but it occurred within a broader context of speculative overheating. The massive liquidation of leveraged positions helped eliminate overexposed traders and restore healthier market conditions going forward.
PEPE is stabilizing around $0.000005 after a historic liquidation, offering a strategic entry point for investors seeking a rebound. The memecoin could double or even triple in value if the bullish momentum continues.
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The shared chart shows that PEPE has found its main monthly support at $0.000005. This technical level represents the floor from which bulls are currently attempting to regain control. As long as this support holds, the bullish scenario remains valid.
The first major resistance is located at $0.00001, a level that has acted as a barrier multiple times in recent months. A confirmed breakthrough of this threshold would pave the way for an acceleration toward $0.000013, where sellers will try to regain initiative. At this stage, PEPE would have already doubled its current value.
The next level to watch is at $0.000016, considered the crucial pivot point. If buyers manage to break through these successive resistance levels without experiencing violent rejection, MMBTtrader estimates that PEPE could reach new all-time highs around $0.00003047. This final target would represent a 230% increase from current levels.
Beyond technical analysis, the macroeconomic context favors a rebound. The massive liquidation eliminated fragile positions and significantly reduced the market’s overall leverage. This forced detoxification creates the conditions for a more sustainable recovery, less exposed to new liquidation cascades.
Trading volume on PEPE already shows signs of recovery, with buyers beginning to reposition after the storm. The resilience of the price above the $0.000005 support demonstrates investors’ appetite for this memecoin, despite the recent extreme volatility.
This bullish scenario remains conditional on maintaining key supports. A loss of the $0.000005 level would invalidate the analysis and could lead to further downside tests. Caution therefore remains essential, particularly for traders using high leverage.
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