Whale Buys $5 Million of PEPE, Bullish Signal or Market Risk?

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The sentiment across the cryptocurrency market has significantly changed as pro-crypto Donald Trump is again elected as the president of the United States. Amid the bullish outlook, a crypto whale who expert in making money in meme coins has made a big bet on Pepe (PEPE) meme coin.

Crypto Whale Bags $5 Million of PEPE Tokens 

On November 6, 2024, the whale transaction tracker TheDataNerd made a post on X (previously Twitter) that the wallet address “0x51C” added 5.5 million USDT to purchase a significant 535.81 billion PEPE meme coin worth $5.07 million. 

3 hours ago, a whale 0x51C deposited totally 5.5M $USDT to #Binance to accumulate 535.81B $PEPE (~$5.07M).

Before $PEPE, he did earned $708k from trading $BRETT and $952k from $TURBO.

Address:https://t.co/dW8fVcBCRr pic.twitter.com/oMUzaNBavn

— The Data Nerd (@OnchainDataNerd) November 6, 2024

The transaction tracker also noted that this whale has made profits of $708k and $952k in BRETT and TURBO. This notable acquisition by this smart whale hints at a perfect buying opportunity for the PEPE meme coin.

Current Price Momentum 

Currently, PEPE is trading near $0.0000092 and has experienced a price surge of 10% in the past 24 hours. During the same period, its trading volume skyrocketed by 130%, indicating heightened participation from traders and investors amid bullish sentiment.

PEPE Technical Analysis and Upcoming Levels 

According to expert technical analysis, PEPE appears bullish, and it has formed a bullish falling wedge price action and is about to break it. Based on the technical analysis, if PEPE breaks this pattern and closes a daily candle above the $0.000010 level, there is a strong possibility it could soar by 35% to reach the $0.0000135 level in the coming days.

Source: Trading View

As of now, PEPE is on the verge of breaking this bullish pattern and also trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.

On-Chain Metrics 

Despite this bullish outlook, on-chain metrics suggest a mixed sentiment among traders. According to the on-chain analytics firm Coinglass, PEPE’s Long/Short ratio currently stands at 0.95, indicating a bearish sentiment among traders.

Additionally, its open interest has jumped by 7% and has been falling continuously. This declining open interest suggests the liquidation of traders’ positions after a notable upside rally or it could also indicate profit booking. 

A combination of rising open interest and a Long/Short ratio below 1 signals a bearish outlook, and traders commonly follow this pattern when building short positions.