PEPE Falls to $0.000007: Is a $2.63M Long Squeeze About to Hit?

Pepe fails to break above the 50-day EMA, tumbling back to a key trendline. Will it bounce or crash to $0.0000050?

As Bitcoin drops below $84K, supply pressure on meme coins increases sharply. Among the top meme coins, DOGE, SHIB, and PEPE have pulled back between 3% and 5% over the past 24 hours.

Pepe, the frog-themed meme coin, is down to $0.0000070, losing bullish momentum amid mounting selling pressure. With a potential downswing looming, is Pepe on the verge of plunging to $0.0000050?

Pepe Price Nears Retest of Broken Falling Wedge

Failing to sustain the bullish breakout from a falling wedge pattern, Pepe has taken a bearish turn. The price couldn’t climb above the 50-day EMA, which has acted as dynamic resistance since late March.

The recent bullish attempt topped out at a 7-day high of $0.0000077 before facing strong rejection. As the 50-day EMA carries heavy supply pressure, Pepe’s price action has formed long-wick candles.

Currently, the decline from the dynamic resistance line suggests a possible retest of the falling wedge’s broken resistance trendline. This presents a potential reversal opportunity for optimistic traders and investors, if the retest holds.

With bullish momentum fading, the MACD and signal lines are nearing a negative crossover. If confirmed, this technical signal could suggest a further bearish extension.

Hackers Accumulating Pepe?

Five new wallets have recently acquired 611 billion Pepe tokens worth $4.28 million at current discounted prices, all within the past 24 hours.

However, the funding source of these wallets is raising eyebrows. Each was funded with ETH withdrawn from Tornado Cash, a decentralized cryptocurrency mixer, 15 days ago.

This leads to a pressing question: Are hackers buying Pepe?

5 wallets spent $4.28M to buy 611B $PEPE in the past 8 hours.

All 5 wallets withdrew $ETH from #Tornado ~15 days ago—possibly linked to a hacker.

Are hackers buying $PEPE?

Address:
0x5D058264e34e27eE1b4f852216Dc4AFC7c320e25
0x53abA3F792d6c8097a7169C8916B1C3f7975f5ed… pic.twitter.com/8yUdFsUBVA

— Lookonchain (@lookonchain) April 16, 2025

Will Long Liquidations Drive Pepe Down to $0.0000050?

Amid heightened volatility, Pepe has seen a -5.37% drop in open interest, now standing at $281.25 million. Interestingly, the volume-weighted funding rate has flipped positive, reaching 0.0063%.

One of the key drivers of the positive funding rate is the increase in long positions. Over the last 12 hours, long positions rose from 46.99% to 49.2%, bringing the Long/Short Ratio close to neutral at 0.9685.

Long positions currently dominate at 55.9%, reflecting growing bullish sentiment for Pepe. However, if the downtrend continues and the price hits $0.00000689, a massive $2.63 million in long liquidations could shake out many buyers.

Pepe Price Targets

With increased price volatility and a broader market pullback, meme coin prices may continue to slide. In the short term, Pepe will likely retest the broken resistance trendline near $0.0000062.

Should this happen, a spike in long liquidations could drag the price down further to $0.0000050. However, from an optimistic standpoint, a successful post-retest bounce could propel Pepe back toward the 50-day EMA, near $0.0000078321.