Whale Buys $5 Million of PEPE, Bullish Signal or Market Risk?

Published by

Zameer Attar

November 6, 2024

The sentiment across the cryptocurrency market has significantly changed as pro-crypto Donald Trump is again elected as the president of the United States. Amid the bullish outlook, a crypto whale who expert in making money in meme coins has made a big bet on Pepe (PEPE) meme coin.

Crypto Whale Bags $5 Million of PEPE Tokens

On November 6, 2024, the whale transaction tracker TheDataNerd made a post on X (previously Twitter) that the wallet address “0x51C” added 5.5 million USDT to purchase a significant 535.81 billion PEPE meme coin worth $5.07 million.

The transaction tracker also noted that this whale has made profits of $708k and $952k in BRETT and TURBO. This notable acquisition by this smart whale hints at a perfect buying opportunity for the PEPE meme coin.

Current Price Momentum

Currently, PEPE is trading near $0.0000092 and has experienced a price surge of 10% in the past 24 hours. During the same period, its trading volume skyrocketed by 130%, indicating heightened participation from traders and investors amid bullish sentiment.

PEPE Technical Analysis and Upcoming Levels

According to expert technical analysis, PEPE appears bullish, and it has formed a bullish falling wedge price action and is about to break it. Based on the technical analysis, if PEPE breaks this pattern and closes a daily candle above the $0.000010 level, there is a strong possibility it could soar by 35% to reach the $0.0000135 level in the coming days.

As of now, PEPE is on the verge of breaking this bullish pattern and also trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.

On-Chain Metrics

Despite this bullish outlook, on-chain metrics suggest a mixed sentiment among traders. According to the on-chain analytics firm Coinglass, PEPE’s Long/Short ratio currently stands at 0.95, indicating a bearish sentiment among traders.

Additionally, its open interest has jumped by 7% and has been falling continuously. This declining open interest suggests the liquidation of traders’ positions after a notable upside rally or it could also indicate profit booking.

A combination of rising open interest and a Long/Short ratio below 1 signals a bearish outlook, and traders commonly follow this pattern when building short positions.

Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.