Enormous Pepe (PEPE) Price Loss: This Whale to Cause Volatility

On a leveraged long position, a prominent Pepe trader is experiencing an unrealized loss of an astounding $3.36 million. The trader used Hyperliquid to go all in on PEPE with a 10x cross-margin leverage. He entered the token at $0.0000814 and is now keeping an eye on it hovering around $0.0000720, a significant divergence that could lead to liquidation.

At its height, the position's value was approximately $27.4 million or more than 378 billion PEPE tokens. Given PEPE's poor price performance and brittle market structure, the liquidation price is $0.020, which is dangerously close. The whale partially closed approximately 67 million tokens and injected an additional $3.08 million USDC across several deposits in an effort to evade the impending liquidation, recovering nearly $490,000.

However, the PEPE market is exposed to significant volatility risks due to this degree of pressured activity. Technically speaking, PEPE has not maintained its prior breakout. It abruptly reversed, printing red candles with increasing sell volume after testing resistance close to the 50 EMA.

According to the current chart, PEPE is having difficulty staying above the $0.0000700 support, which is a crucial psychological level that distinguishes a partial trend breakdown from a major recovery. The RSI is trending below 50, which indicates that bears are taking charge. Additional position closures could occur if the whale experiences further drawdown, which could flood the market with tokens and further suppress the price. As a ticking volatility bomb, the entire cryptocurrency community is now keeping an eye on this address.

If the whale's plan fails and liquidation is initiated, the ensuing sell pressure may push PEPE down to levels seen in November 2024. Conversely, any positive momentum from PEPE could enable this position to bounce back. However, for the time being, this wallet is a focal point of market uncertainty due to the whale's loss and obvious desperation. PEPE traders take caution — there will be turbulence soon.