- A trader held PEPE for 7 months before pouring his savings into Kraken.
- The sale generated $1.35 million in proceeds, suggesting a bullish signal locally.
- A strong foundation in derivatives cushions the PEPE market downturn.
Pepe (PEPE), one of the most successful meme currencies, has caught the attention of cryptocurrency analysis platforms due to its unusually large deposits. According to on-chain data from the Debank cryptocurrency portfolio tracker, Ethereum (ETH) whales sent 118.5 billion PEPE coins to Kraken on June 27, 2024.
With Right Timing, PEPE Trader Becomes a Millionaire
After holding the PEPE for seven months, Whale deposited the full amount, worth $1.48 million at the time of the stamp transaction, into Kraken. The investor made a profit of $1.35 million when he acquired PEPE tokens during the market crash in late November 2023. This earned this PEPE trader an 11x profit.
Once the most profitable major cryptocurrency companies begin to turn a profit, the overall market dynamics are likely to turn bearish due to impending selling pressure. In the case of PEPE, the liquidity base of a bearish price trend softens the blow, as 84% of current PEPE holders are already profitable.
High Derivatives Demand Crown PEPE Coin
A large cryptocurrency dump on a centralized exchange (CEX) may fit the description of a top signal, but it is important to note that such actions do not always have an immediate impact on the price. PEPE has fallen 28% since its all-time high last month on May 27, 2024.
With a price milestone of $0.00001717, PEPE briefly entered the TOP 20 of global cryptocurrency market capitalization. This achievement can be partly attributed to its success in the derivatives market, where the token is the most sought-after meme currency.
The smart contract versions available in the derivatives market, 1000-PEPE and PEPE, typically have daily trading volumes exceeding $1 billion, according to CoinGlass. As the price of PEPE returned to its original state 24 hours later, both long position holders and short sellers experienced similar liquidations of $1.2 million each. 24-hour volume and open interest (OI) for PEPE were down 11% and 3.55%, respectively.
On the flip side
- The consolidation phase of the frog-themed PEPE is evident in three key on-chain signals: a decrease in net network growth, a decrease in the number of large transactions, and a slight decrease in whale concentration.
- However, PEPE’s Chaikin Money Flow (CMF) index has crossed the 0 mark, completely nullifying the bearish sentiment as the positive CMF statistic indicates renewed interest in PEPE among major companies.
Why This Matters
PEPE has returned 700% since the beginning of the year, making the frog-themed coin the highest-performing large-cap alternative coin.
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