Crypto whales have taken advantage of recent market declines and lined their pockets as the price of several tokens slipped to lower levels. During the last few pullbacks, one whale bought over 400 billion PEPE and has already recorded unrealized profits on his purchase. Some market observers believe that the token is poised to lead the “meme season” after its recent performance.
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Whale continues on buying spree
A week ago, the crypto market saw a significant crash, with the prices of most cryptocurrencies plunging by over 20%. The price of Bitcoin (BTC) fell from the $59,000 mark to as low as $49,000 last Monday. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market cap, lost 24% after its price fell below the $2,200 support zone.
PEPE, one of the leading memecoins, also saw a price drop of over 28%, which led to a negative sentiment among some crypto investors. After the memecoin recovered throughout the week, a whale decided to make a profit on the frog token.
On-chain data analytics firm Lookonchain revealed that a whale had sold its 795.92 billion PEPE since August 1. The address that withdrew its holdings from Binance on March 1 sent 400 billion tokens worth around $4.2 million back to the crypto exchange.
According to Lookonchain, the whale earned a return on investment (ROI) of 230%. 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” filled its pockets during the retracements on August 5 and 12.
According to the post, the whale bought 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 writing, the investor had earned over $170,000 (+5.43%) in unrealized profits. In addition, on August 5, the same address purchased 2,978 ETH worth around $7.05 million, earning over half a million in unrealized profits.
PEPE recovers 10% from Monday’s decline
In the late hours of Sunday, the price of the token fell from $0.000008 to $0.0000076, a 12% drop from the previous day. Following the buying spree, PEPE’s price rose 10% after the market correction, reclaiming the $0.000008 support zone.
The recovery saw the token retest the $0.0000084 price area before falling back to the $0.0000082 level. This development represents a 2.1% increase in the last 24 hours and a 36% increase on the weekly time frame. At the time of writing, the third-largest memecoin by market cap is trading at $0.00000823.
According to crypto trader Trade4ddict, who goes by the pseudonym, despite today’s drop, PEPE has “held up well again compared to most altcoins.” For him, the frog-themed memecoin “confirmed a breakout from the 4-day price range” on Friday, completing the bullish setup.
The trader believes that the token is “regaining strength” after the recent “minor correction.” This suggests to him that the “next move is a breakout from the descending broadening wedge.” According to the post, a breakout could result in a run that retests key resistance levels and pushes the price to a new all-time high (ATH).
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Another market observer believes that PEPE is “looking to lead the meme season.” The analyst highlighted the token’s strong comeback after it “fell below the major support level,” suggesting that an uptrend appears favorable.
Featured image from Unsplash.com, chart from TradingView.com
