Over $1 Million Lost in PEPE Liquidations: Is More Downside Ahead?

Pepe (PEPE), the popular memecoin, finds itself under mounting pressure as technical indicators and on-chain data suggest further downside. With a steep drop in price over the past week and cascading liquidations triggered across major wallets, PEPE is nearing a critical inflection point.

The broader market sentiment has turned bearish, and unless bulls step in decisively, the token could face deeper losses. A series of failed support retests and increasing sell volume have put PEPE in a vulnerable position, and many eyes are now on its next move.

Liquidation Cascade Adds Fuel to the Fire

According to Lookonchain, James Wynn’s PEPE long position in a separate wallet suffered a severe liquidation event. The total losses from this position exceeded $1 million, leaving only $14,850 in the account.

This loss adds to the growing wave of forced sell-offs in PEPE-linked wallets as price support continues to erode. Wynn’s liquidation highlights how vulnerable leveraged positions have become amid growing market volatility.

Related: PEPE Eyes Breakout: Can It Conquer Resistance to Reach $0.00001100?

Besides the losses, this liquidation spree is also impacting trader confidence. With each major account falling under margin pressure, the probability of more downside increases. These liquidations create a snowball effect, amplifying selling pressure across exchanges.

Technical Signals Turn Cautious

Ali Martinez, a crypto analyst, emphasized that PEPE must reclaim the $0.0000118 level to avoid a confirmed bearish breakdown. As of press time, the price is trading at $0.00001041, down over 10% in the past 24 hours.

If bulls fail to regain control above $0.0000118, downside targets could extend toward $0.00001080 and even $0.00000970. Significantly, the chart shows a consistent pattern of lower highs and lower lows since PEPE peaked near $0.00001450.

Furthermore, resistance is currently set around $0.00001170, and without a strong bullish reversal, the downtrend appears intact. A drop below $0.00001080 could trigger additional selloffs, reinforcing bearish dominance.

Triangle Consolidation Hints at Imminent Volatility

Token Talk analysts identified a symmetrical triangle forming on the daily timeframe. The price is coiling within this tightening range, with support currently tested between $0.0000108 and $0.0000115. The current consolidation phase often precedes explosive moves.

Source: X

A successful defense of this zone, followed by a breakout above the upper trendline, could ignite a rally toward $0.0000130 to $0.0000145.

Related: PEPE Breaks Out of Consolidation, Eyes $0.00002 Target

However, failure to hold support might validate the bearish continuation pattern and drive prices lower. The next few trading sessions could be critical.