Whales are turning their attention to the PEPE meme coin, taking positions as the crypto asset looks to stage a major price rally.
Lookonchain reported in a tweet today that a new wallet withdrew 1.52 trillion PEPE tokens from the Kraken exchange a few hours ago. The assets were worth approximately $16 million at the time of the transaction.
Notably, outflows from centralized exchanges are generally a bullish indicator, as they suggest reduced selling pressure on the coin. In other words, this whale has moved to secure their acquired 1.52 trillion PEPE tokens in a personal wallet, likely awaiting the next price movement.
Positioning Strategically in PEPE
Notably, the price of PEPE has risen 9.64% in the past week. This weekly performance has improved its overall outlook, especially considering the bearish trend it has been in over the last 30 days. Specifically, the coin remains down 13% compared to its price a month ago, despite the recent 9% surge.
Notably, PEPE was among the few meme coins to establish an all-time high last December. It benefited significantly from Bitcoin’s $100,000 breakthrough at the time compared to Dogecoin and Shiba Inu.
The price of PEPE reached $0.00002825 at its peak but is currently trading at a 62.7% discount from that high. At one point, the price dipped to $0.000005306 in March, representing a massive 81.2% loss for investors who bought at the December peak.
While the whale who withdrew 1.52 trillion PEPE has since moved some of the tokens, worth only thousands of dollars, to platforms such as gambling site BC.game and crypto exchange KuCoin, it has retained most of the stash.
Given the current price level, the address may be securing their position in anticipation of another potential December blow-off top for the meme coin. Moreover, the financial industry is awaiting a rate cut by the Fed next week, which could inject fresh liquidity into risk assets, potentially helping prices soar even higher.
More Whales Taking Positions in PEPE
Beyond this address, several other deep-pocketed investors are also quietly taking massive positions in the meme coin.
For instance, last week Lookonchain reported that a trader opened a $2.5 million PEPE position with 10x leverage. On August 24, the market tracker also reported that a whale bought 267 billion PEPE tokens for $3 million. These transactions suggest strong confidence in the coin’s price prospects.
This sentiment is further reflected in recent data from CoinGlass, which shows that open interest in PEPE has reached $700 million, the highest level since July.
As for how high market participants expect PEPE to go, a growing consensus suggests a potential retest of its all-time high. From the current price of $0.00001057, that would represent a 170% gain.
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