Crypto whales have taken advantage of the recent market downturns, loading up their bags as the price of several tokens slipped to lower levels. During the last few retraces, a whale bought over 400 billion PEPE, already registering unrealized profits from its purchase. Some market watchers believe the token is poised to lead the “memeseason” after its recent performance.
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Whale Goes On Buying Spree
A week ago, the crypto market saw a significant slump, with most cryptocurrency prices nosediving by over 20%. Bitcoin (BTC) saw its price fall from the $59,000 mark to as low as $49,000 last Monday. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market cap, retraced 24% after its price dropped below the $2,200 support zone.
PEPE, one of the leading memecoins, also saw a price decline of over 28%, which fueled a negative sentiment among some crypto investors. After the memecoin recovered over the week, a whale decided to take profit from the frog-themed token.
On-chain data analysis firm Lookonchain revealed that a whale had sold its 795.92 billion PEPE since August 1. The address, which withdrew its holdings from Binance on March 1, sent 400 billion tokens, worth around $4.2 million, back to the crypto exchange.
The whale saw a return on investment (ROI) of 230%, according to Lookonchain. On Friday, the address deposited its remaining 3945.92 PEPE on 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 dip. According to SpotOnChain, a whale named “cookislandstrust.eth” loaded its bags during the August 5 and August 12 retraces.
Per the post, the whale purchased 300 billion PEPE a week ago and another 120 billion tokens today. In the last week, the address spent 3.13 million USDT to buy the 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 bought 2,978 ETH, worth around $7.05 million, on August 5, making over half a million in unrealized gains.
PEPE Recovers 10% From Monday’s Dip
In the late hours of Sunday, the token saw its price drop from the $0.000008 level to the $0.0000076 mark, a 12% decline from the day prior. Following the buying spree, PEPE’s price saw a 10% surge from the market shakeout, reclaiming the $0.000008 support zone.
The recovery saw the token retest the $0.0000084 price range before retracing to the $0.0000082 level. This performance represents a 2.1% increase in the last 24 hours and a 36% surge in the weekly timeframe. As of this writing, the third-largest memecoin by market cap is trading at $0.00000823.
According to the pseudonym crypto trader Trade4ddict, PEPE has been “holding well again compared to most alts,” despite today’s dip. To him, the frog-themed memecoin “confirmed a breakout of 4 days price range” on Friday, which completed the bull setup.
The trader considers the token is “gaining strength again” after the latest “little correction.” This suggests to him that the “next step is a breakout of the descending broadening wedge.” Per the post, a breakout could lead to a run that would retest key resistance levels and propel the price to a new all-time high (ATH).
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Similarly, another market watcher sees PEPE as “looking to lead the memeseason.” The analyst highlighted the token’s strong comeback after “breaking below the main support level,” suggesting that an uptrend seems favorable.
Featured Image from Unsplash.com, Chart from TradingView.com
