- A profitable whale has made another huge bet on PEPE after buying 173B tokens.
PEPE was relatively discounted and hit a key demand level.
As a seasoned crypto investor with a knack for spotting trends and recognizing patterns, I find myself intrigued by the latest move of the whale in PEPE. Last year, this same whale made a significant bet on PEPE and reaped an impressive 800% return within nine months. This time around, the whale has scooped up another 173 billion tokens, worth about $1.3 million, at what appears to be a crucial demand level.
Recently, the price drop for Pepe’s [PEPE] saw it reach a significant demand point from August, sparking attention among major investors such as whales. As per the data from Spot On Chain, a well-known whale has accumulated approximately 173 billion PEPE tokens, which equates to around $1.3 million in value.
Last year, the whale made a huge bet on PEPE and held the frog-themed meme coin for nine months, gaining over 800%.
As an analyst, I’d rephrase that statement as follows: “In October 2023, I, as a whale, invested just 200K USD Coin (USDC) to acquire approximately 170.2 billion PEPE tokens. Fast forward to July 2024, I sold all these tokens for a staggering 1.97 million USDC, translating into a profit of around 1.77 million USDC or an impressive 886% return on investment! I held onto these tokens for nine months before realizing this substantial gain.”
Will the huge bet pay off?
It’s uncertain if the whale’s bet will win out again. But it’s worth noting that the whale reappeared in the market at an important demand point, which adds intrigue to the situation.
Besides, the memecoin’s current price (near $0.000007) appeared to be undervalued.
Based on Santiment’s analysis, the investment portfolios for those holding for 90 days and 180 days showed losses, as suggested by their respective Market Value to Realized Value (MVRV) ratios.
The MVRV metric checks if cryptocurrencies are either overvalued or undervalued. Negative values suggest that the assets might be underpriced. In this case, as short-term and medium-term investors experienced 19% and 14% losses respectively, it was considered that the token’s current price might be lower than its actual value.
Furthermore, the average combined sentiment towards the meme coin was at a record low, which often signals a cautious approach among investors who are looking to buy when the market is fearful or experiencing a downturn. Essentially, the current price of PEPE represented a good deal in comparison to its value.
Key targets for PEPE
On the day-to-day price graph, the Stochastic Relative Strength Index (RSI), a tool that suggests possible price direction changes, moved towards an oversold state, suggesting a potential shift in the ongoing price trend.
Using a Fibonacci retracement tool, we identified potential price levels following the decline in April and subsequent rise in June. The 61.8% Fibonacci level, denoted by the red marker, represents an imminent, short-term bullish objective.
Additionally, it coincided with the 50-day Exponential Moving Average, indicating it served as a crucial temporary resistance level or area of potential selling pressure, also known as a short-term supply zone.
If the price bounces off the demand level, which is indicated by the cyan marking and corresponds to the 78.6% Fibonacci level at $0.0000068, it could trigger a possible 30% increase in value.
Read Pepe [PEPE] Price Prediction 2024 – 2025
However, a breach below the demand area would invalidate the above bullish thesis.
As a researcher, I’ve found that PEPE was significantly undervalued, with a noticeably low demand interest. This could potentially have influenced the recent strategic action taken by the ‘whales’.
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2024-08-29 18:16