- A newly identified whale, “0x8f5,” withdrew 280 billion $PEPE tokens worth $5 million from Binance
- Whale accumulation has historically been a bullish precursor, particularly in low-cap tokens
An analysis of recent on-chain data revealed a surge in PEPE accumulation by cryptocurrency whales – A sign of renewed interest in the popular memecoin.
In fact, a newly identified whale, “0x8f5,” withdrew 280 billion PEPE tokens worth $5 million from Binance, marking a significant transaction in the token’s ecosystem. This trend hints at strategic positioning by high-net-worth investors, likely in anticipation of a potential rally or market event.
Historically, whale activity in meme-based tokens has often preceded price volatility, drawing attention from traders seeking to capitalize on these movements. While sentiment around PEPE has shifted towards bullish territory lately, traders are advised to remain cautious. Especially as whale-driven accumulation can also result in rapid sell-offs once profit targets are met.
Market performance
At the time of writing, PEPE seemed to be demonstrating resilience in a volatile crypto market, trading near its critical support level of $0.0000019. Recent upticks in trading volume pointed to rising interest from both retail and institutional participants too.
Whale accumulation has historically been a bullish precursor, particularly in low-cap tokens, as it often reflects confidence in the asset’s potential.
Broader market factors, such as Bitcoin’s stability and altcoin recovery, have likely contributed to PEPE’s current performance. However, traders should remain vigilant of external economic developments or regulatory announcements that may influence market dynamics.
The key focus for PEPE traders is whether it can sustain its support zone or face further declines towards $0.0000015 on the chart.
Active address analysis
On-chain data also highlighted a 15% hike in active wallet addresses – A sign of rising engagement among users. This metric often correlates with price volatility, as it indicates heightened participation across the market.
Source: Glassnode
A sustained hike in active addresses could support a bullish outlook, particularly if paired with consistent trading volume. However, traders should remain cautious, especially as spikes in active addresses may also underline distribution by larger holders to smaller traders.
If activity levels decline, PEPE could face reduced liquidity, leading to sideways or bearish price action on the charts.
Open Interest analysis
Open interest (OI) for PEPE Futures contracts has risen by 18% over the past 48 hours. This can be interpreted to mean there has been an uptick in speculative activity.
Source: Coinglass
At the time of writing, long positions seemed to be dominating the market, accounting for 62% of the total OI to highlight optimism among traders.
If PEPE breaks above its resistance levels, OI could continue to rise, potentially fueling a rally. Conversely, a drop below its support could trigger long liquidations, amplifying downward pressure.
Now, neutral funding rates point to a balanced market for now, but traders should watch for shifts in these rates. Especially since these may indicate growing bullish or bearish sentiment
MVRV Analysis
Finally, the MVRV (Market Value to Realized Value) ratio revealed an interesting divergence between short and long-term holders. At press time, short-term holders were operating at an average loss of -8%, while long-term holders remained in profit at 12%.
Source: TradingView
This divergence can be seen to mean reduced selling pressure from weak hands, potentially paving the way for a price recovery.
If the short-term MVRV ratio moves into positive territory, it could indicate renewed buying interest, triggering a rally. However, a breakdown below key support levels might deepen losses for short-term holders, leading to further market uncertainty.
Overall, PEPE’s market position remains at a critical juncture right now. Whale accumulation, increasing active addresses, and rising Open Interest all pointed towards heightened market activity. However, the token’s ability to maintain key support levels will determine its next move.
Cautious optimism remains warranted, as both bullish and bearish scenarios remain in play depending on market dynamics and broader crypto sentiment.
