PEPE Coin Sees 5.5% Recovery Amid Market Chaos Following Bybit’s $1.4 Billion Hack: Is a Bigger Rebound on the Horizon?

PEPE’s price experienced a notable rebound of 6% following a significant downturn that coincided with the recent $1.45 billion hack of the Bybit cryptocurrency exchange. This surge raises questions about whether this upward momentum could signal the beginning of a more substantial recovery phase.

The shockwave from the Bybit hack, attributed to the infamous Lazarus Group, resulted in a staggering loss exceeding 400,000 eth, equating to approximately $1.5 billion at the time of the incident. This breach not only impacted Bybit’s reputation but also inflicted severe losses across the crypto market, which saw a drop of around $75 billion. In the wake of this, PEPE’s price initially declined by 10% on Friday, reflecting the broader trend in the cryptocurrency sector. In contrast, other meme coins, including Dogecoin and solana‘s Dogwifhat (WIF), managed to limit their losses to below 5% shortly after the hack.

Responding to the crisis, major players in the crypto industry quickly moved to stabilize the situation. Binance, a prominent exchange, transferred over 50,000 ETH to Bybit to bolster liquidity. Bybit’s CEO took to social media to reassure users about the safety of their remaining funds, a crucial step in restoring confidence among traders.

The swift action by industry stakeholders helped prevent a catastrophic market collapse reminiscent of previous incidents, such as the FTX scandal, which saw the global crypto market shrink dramatically in just ten days. Within hours following the hack, signs of recovery emerged, as PEPE’s price climbed back by 6%, again approaching the $0.00009 mark.

As traders strategized around the potential recovery, significant bets were placed on PEPE’s price rally. Analysts speculate that Bybit might need to repurchase stolen ETH to reimburse affected customers, potentially triggering an uptick in ethereum’s price due to constrained liquidity. Prominent analyst Ash Crypto highlighted this scenario, warning his vast following that the hacker would face difficulties liquidating their holdings without prompting further market freezes.

With around 120 million ETH circulating, the loss of 400,000 ETH represents approximately 3% of the total supply. If Bybit’s recovery strategy entails repurchasing ETH, it could tighten market liquidity and catalyze price increases across Ethereum and related tokens.

PEPE’s recovery appears to be bolstered further by favorable trading conditions in the derivatives markets. Data from Coinglass reveals that traders have aggressively built long positions, outpacing short positions nearly 70%. The increase in demand reflects a bullish sentiment among traders as the broader market stabilizes despite lingering uncertainties from the Bybit incident.

Interestingly, there is rising speculation about the implications of the price recovery as PEPE seeks to break through critical levels of resistance. Currently, PEPE’s price is positioned below the $0.000010 threshold, with the recovery not yet reversing all the losses experienced during Friday’s dramatic downturn. However, increasing long interest indicates potential for continued upward pressure.

Market forecasts suggest movement toward $0.000011 could initiate a new recovery phase, especially as PEPE has recently surpassed the Volume-Weighted Average Price (VWAP) at $0.00000948. This change in momentum could ignite dealers’ competition for positions, anticipating a return to pre-crash levels. Observations of the daily candlestick charts reveal an evolving dynamic, with the lower Bollinger Band acting as temporary support and a newer green candle hinting at a possible trend reversal.

However, traders must be cautious; if PEPE fails to maintain its position above the VWAP mark, it could see another wave of selling that retests previous lows around $0.00000796. The volume delta signifies current negative pressure, as sellers remain active. Nonetheless, the uptick in buying interest indicates gradual restoration in liquidity, suggesting bulls could regain control, setting the stage for PEPE’s recovery.

As analysts continue to monitor the effects of Bybit’s losses on both Ethereum and PEPE, the immediate future appears promising, contingent on external market forces and the successful execution of recovery strategies by Bybit and the broader crypto community. The evolving landscape of this event could shape crucial decision-making for traders and investors alike, heightening interest in the resilience of the cryptocurrency market as it navigates the aftermath of significant disruptions.