Pepe (PEPE) Hit by $1.96 Million Liquidation Bomb, Can It Hold the $0.0000044 Support Level?

▲ Pepe (PEPE)/AI Generated Image ©

Pepe (PEPE), which had been on a steep parabolic surge, plummeted over 10% in a single day due to excessive leveraged liquidations in the derivatives market and profit-taking sales.

According to cryptocurrency market aggregator CoinMarketCap on September 23 (local time), Pepe traded bearishly at $0.00000439, down 10.64% from 24 hours prior. This decline was critically influenced by the chain liquidation of excessively accumulated leveraged long (buy) positions after the upward momentum slowed following its 7-day high of $0.00000534. Concurrently, major memecoins like Dogecoin (-11%) and Dogwifhat (-13%) also experienced corrections, with risk-off sentiment across the memecoin sector accelerating the decline.

The direct trigger for the sharp drop was a chain reaction of position liquidations in the futures market. Pepe's futures open interest nearly doubled since early September, surging from $393 million to $402 million. With the market structure weakened by extreme leverage accumulation, when the price broke down from the $0.00000534 resistance level, approximately $1.96 million worth of long positions were forcibly liquidated, leading to a rapid exodus of speculative buying and a sharp decline.

Overheating technical indicators are also cited as an inevitable cause for the pullback. The 14-day Relative Strength Index (RSI) had surged to 76.71, entering an extreme overbought zone, statistically predicting a healthy correction phase. However, on a weekly basis, it still maintains a high growth rate of over 30%, and the dominant diagnosis is that the long-term trend itself remains on an upward trajectory due to the recent golden cross.

The primary key to future price defense is whether it can stabilize within the $0.0000044 to $0.0000047 support zone, which was its breakout point in early September. If Pepe manages to hold the $0.0000044 line, it is likely to consolidate, undergoing a period of selling pressure absorption between $0.0000044 and $0.0000050. Conversely, if Bitcoin (BTC), the leading cryptocurrency, fails to defend the $84,500 level and undergoes further correction, there is a persistent risk of renewed selling pressure across altcoins.

Experts warned that if the daily closing price, accompanied by trading volume, breaks below $0.0000044, there is a risk of a further sharp decline to the $0.0000037 level, where the 50-day Exponential Moving Average (EMA) is located. Conversely, to firmly continue the weekly upward trend, supporting above the 61.8% Fibonacci retracement level of $0.00000403 and robustly defending the $0.0000044 support line was presented as an urgent priority.

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