PEPE Volatility Spikes as Binance Hack Triggers Massive Sell-Off

The massive sell-off followed an exploit of Ethereum’s EIP-7702 authorization system, which allowed attackers to compromise Binance hot wallets. According to blockchain tracker Lookonchain, the illicit liquidation was part of a broader $158.25 million sell-off involving several cryptocurrencies, including UNI, LINK, and AAVE. Despite the heavy supply shock, the token showed resilience, recovering from its intraday lows to trade near $0.00000491.

Market participants responded to the volatility with mixed signals. While open interest in PEPE futures dropped 10.09% to $369.85 million, trading volume surged nearly 60% to $1.52 billion as traders liquidated leveraged positions. Amidst the chaos, the well-known trader dimethyltryptamine.eth—famous for turning a $251 investment into a $100 million position—purchased 45.08 billion PEPE for approximately $206,500. Technical indicators currently place immediate resistance at $0.0000050, with analysts monitoring a potential cup-and-handle formation that could signal further upside if the price clears the $0.0000052 threshold.