677 billion PEPE tokens moved: What’s cooking?
- The frog-themed memecoin has lost nearly 11% in the last seven days.
- Whales added on to their PEPE holdings amidst the downtrend.
The turbulent world of memecoins can even test the resilience of some of the grittiest traders in the market. Fathom this – Pepe [PEPE], which exploded 396% upon its blockbuster listing on Binance in early May, has been trading in the red over the past week, as per CoinMarketCap.
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The frog-themed memecoin lost nearly 11% in the last seven days leading up to a press time value of $0.00000133. With this, the monthly losses mounted to 13%.
While the shift in momentum could have ruined the strategies of traders, some intriguing developments have come to light, according to on-chain data.
PEPE investors eyeing something big?
According to a tweet by Lookonchain dated 27 July, a smart money investor extracted 677 billion PEPE tokens from Binance at a buying price of $0.000001385. At press time value, the transaction was worth $901K.
A SmartMoney deposited 500 $ETH ($937K) to #Binance and withdraw 677B $PEPE ($941K) an hour ago, the buying price is $0.000001385.
He spent 100 $ETH ($187K) to buy 134B $PEPE on May 1 and withdrew 122B $PEPE ($130K) from #OKX 12 hours before #Binance announced listing $PEPE. pic.twitter.com/rbWlxECAZc
— Lookonchain (@lookonchain) July 27, 2023
“Smart Money” is a term generally used for well-informed and experienced investors, having a better understanding of the market vis à vis retail investors. This cohort has access to a larger pool of capital and a track record of profitability.
In the latest scenario, their moves can signal a lot of things. Because of sliding PEPE prices, this particular investor probably bought the dip in hopes of bigger returns in the near term. Considering the history of memecoins, this might turn out to be a good strategy after all.
The other deduction was rooted in the past actions of the trader. It was revealed that the smart money investor went into an accumulation spree in the days leading up to the memecoin’s listing on Binance.
In fact, just 12 hours before Binance’s official announcement of the listing, about 122 billion PEPE tokens were withdrawn.
Read Pepe’s [PEPE] Price Prediction 2023-24
Going by past behavior, this action by smart money seemed to suggest that a big move for PEPE was around the corner. However, it was not clear what the trigger could be.
Exchange supply falls
Data from Santiment corroborated the findings made above. Most large holders of PEPE made use of the dip in prices over the last week and added on to their holdings. Supply held by non-exchange addresses exhibited a stark divergence with the price action.
Source: Santiment
