- After seven months of holding PEPE, a trader pours savings into Kraken.
- Making $1.35M in the process, the sell-off hints at a local top signal.
- Strong foundation in Derivatives softens market downturn on PEPE.
Pepe (PEPE), one of the most successful meme currencies, has gained the attention of crypto analytics platforms due to an unusually large deposit. According to on-chain data by Debank crypto portfolio tracker, an Ethereum (ETH) whale sent 118.5 billion PEPE coins to Kraken on June 27, 2024.
Right Timing Makes PEPE Trader a Millionaire
After holding PEPE for seven months, the whale deposited the full amount to Kraken, worth $1.48 million at stamped transaction time. This investor made a profit of $1.35 million, as the PEPE tokens were acquired during the market dip in late November 2023. By doing so, this PEPE trader earned an 11-fold profit.
When the most profitable major crypto players start to take profits, the general market dynamics are likely to turn bearish, because of the impending sell pressure. In PEPE’s case, the liquidity foundation in bearish price trends softens the blow, as 84% of current PEPE holders are already in profit.
High Derivatives Demand Crowns PEPE Coin
While huge crypto dumps to centralized exchanges (CEXs) can fit the description of a top signal, it’s important to note that such actions don’t always immediately affect the price. PEPE slumped by 28% since its all-time peak claimed last month, on May 27, 2024.
At $0.00001717, the price milestone briefly had PEPE jump into the TOP 20 by global crypto market capitalization. The performance can be partly ascribed to the success in Derivatives markets, where the token is the most demanded meme currency.
1000-PEPE and PEPE, smart contract versions available on Derivatives markets, usually net above $1 billion in trading volume per day, according to CoinGlass. As PEPE’s price went back to the status quo after 24 hours, both long-position holders and short-sellers experienced similar liquidations of $1.2M each. 24-hour volume and PEPE’s Open Interest (OI) slumped by 11% and 3.55%, respectively.
On the Flipside
- The consolidation phase for the frog-themed PEPE is evident in three more key on-chain signals: lowering net network growth, reduced large transaction number, and a slight drop in whale concentration.
- However, PEPE’s Chaikin Money Flow (CMF) index flashed above zero, invalidating an entirely bearish sentiment, as positive CMF stats depict a renewed interest in PEPE among major players.
Why This Matters
PEPE garnered a 700% year-to-date return, making the frog-themed coin a top performer among large-market cap alternatives.
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