Pepe (PEPE) recently made headlinesafter hitting a new all-time record (ATH) this week. The meme coin has also attracted attention crypto whales who have been accumulating the crypto token lately. Whales collecting the meme coin will suggest that this might be a good time to buy PEPE, but that might not be the case.
Crypto Whales Buy 720 Billion PEPE Tokens
On-chain analytics platform Lookonchain recently drew the crypto community’s attention to a whale that bought 520 billion PEPE from the crypto exchange Binance. However, this move may have been motivated by fear of missing out (FOMO), as Lookonchain noted that this trader has not always made the smartest investment moves as he has lost $6.1 million so far.
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In the meantime, data about the chain shows another whale who bought more than 200 billion PEPE tokens through the trading firm Cumberland. Regardless of their intention, crypto whales who collect a crypto token usually paint a bullish outlook for the coin in question. Based on this, crypto investors will typically assume that this is an excellent time to buy the meme coin in anticipation of further price increases.
However, according to data, this may not be a good time to buy InTheBlok suggests that a price dump for PEPE could be imminent before it makes another move higher. The market information platform revealed That 100% of PEPE holders made a profit thanks to the meme coin hitting a new ATH.
Given such a development, many of these holders are expected to realize profits from their PEPE investment, leading to a wave of sell-off that could negatively impact the price of the meme coin. Therefore, those looking to invest in PEPE at this time would be better off waiting for PEPE to reach the bottom of this selling pressure before purchasing the meme coin.
Still has plenty of bullish momentum to go
Crypto analyst and trader Rachid Crypto recently marked several factors that indicate this PEPE has not yet reached its peak. The analyst noted that the “mega-meme cycle” and altcoin season have yet to start. These are events that could still cause a further increase in the price of the meme coin.
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Additionally, PEPE has yet to be listed on major crypto trading platforms such as Coin base And Robin Hood. That means there is still a lot of liquidity that could flow into the meme coin ecosystem. The price of PEPE is likely to trend upwards when these trading platforms decide to launch the meme coin.
Meanwhile, Rachid Crypto stated as much Ethereum will surpass its ATH, meaning PEPE’s price will benefit from ETH’s run when this happens. The price of PEPE is known to have some correlation with that of Ethereum and will most likely experience a significant rally as the price of Ethereum rises.
At the time of writing, PEPE is trading around $0.00001056, down more than 5% in the last 24 hours, according to facts from CoinMarketCap.
Chart from Tradingview.com