Crypto whales have capitalized on the recent market declines, loading up on their bags as several tokens fell to lower levels. During the past few bounces, the whale has purchased over 400 billion PEPE, already recording unrealized profits from the purchase. Some market observers believe the token is poised to lead the “meme season” following its recent performance.
The whale goes shopping
The cryptocurrency market saw a significant drop a week ago, with most cryptocurrency prices dropping by more than 20%. Bitcoin (BTC) fell from $59,000 to just $49,000 last Monday. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, retreated 24% after its price fell below the $2,200 support zone.
PEPE, one of the leading memecoins, also saw its price drop by over 28%, which sparked negativity among some crypto investors. After memecoin regained value over the course of a week, the whale decided to profit from the frog-themed token.
On-chain data analytics company Lookonchain revealed that since August 1, the whale has sold 795.92 billion PEPE. The address, which withdrew its shares from Binance on March 1, sent 400 billion tokens worth about $4.2 million back to the cryptocurrency exchange.
According to Lookonchain, the whale saw a return on investment (ROI) of 230%. On Friday, the address deposited the remaining 3,945.92 PEPE to Binance, making a total profit of $5.06 million.
However, not all investors decided to sell, as one address took the opportunity to buy the low. According to SpotOnChain, a whale called “cookislandstrust.eth” loaded up its bags during the August 5 and 12 pullbacks.
According to fastingwhale bought 300 billion PEPE a week ago and another 120 billion tokens today. Last week, the address spent 3.13 million USDT to buy 420 billion tokens at an average price of $0.000007455.
At the time of the report, the investor had made over $170,000 (+5.43%) in unrealized profits. Additionally, the same address purchased 2,978 ETH, worth about $7.05 million, on August 5, making over half a million in unrealized profits.
PEPE recovers 10% after Monday’s drop
In overdue Sunday hours, the token price fell from $0.000008 to $0.0000076, down 12% from the previous day. Following the buying spree, PEPE price rose 10% on the back of the market shock, reclaiming the $0.000008 support zone.
The bounce saw the token retest the $0.0000084 price range before settling back down to $0.0000082. This performance represents a 2.1% gain in the past 24 hours and a 36% gain in the weekly time frame. At the time of writing, the third-largest memecoin by market capitalization is trading at $0.00000823.
According to the pseudonym of cryptocurrency trader Trade4ddict, PEPE was “holding up well against most alts again,” despite today’s drop. For him, the frog-themed memecoin “confirmed a breakout from a 4-day price range” on Friday, which ended a bullish setup.
The trader believes the token is “gaining strength again” after the recent “minor correction.” This suggests to him that “the next step is a breakout from a falling, expanding wedge.” According to the post, a breakout could lead to a run that would retest key resistance levels and push the price to a novel all-time high (ATH).
Similarly, another market observer he sees PEPE “wants to lead the meme season.” The analyst highlighted the token’s powerful comeback after “breaking below a major support level,” suggesting the uptrend seems favorable.
Featured image from Unsplash.com, chart from TradingView.com
