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Whale Goes on PEPE Buying Spree Amid Liquidation Anomaly

Whale Goes on PEPE Buying Spree Amid Liquidation Anomaly

DailycoinDailycoin2024/11/06 21:55
By:Dailycoin
  • Pepe Token bagged 16% as U.S. Elections spark market-wide rally.
  • Anticipating the move, one crypto whale bought tons of PEPE coins.
  • Market liquidation statistics show an unlikely trend amid price surge.

A crypto whale has been spotted making multi-million moves on Ethereum (ETH) . The investor deposited $2 million Tether USD (USDT) to Binance in the early hours of November 6, 2024, cashing out 212.448B Pepe (PEPE) to a self-custodial wallet one hour later.

PEPE Price to Get Rid of Another Zero?

Another $2 million USDT stablecoin deposit to Binance followed in an hour, mainly spent on another 207.686 billion PEPE coins, worth $1.969 million at stamped transaction time. The crypto whale’s move preceded Pepe’s double-digit upswing, forming a daily local double top at $0.00000960 around 8 AM UTC.

A whale just bought over $5M worth of $PEPE !

Over the last 2 hours, smart whale “0x51c” deposited 5.5M $USDT to #Binance and so far has withdrawn back 535.81B $PEPE ($5.07M) from the CEX.

Notably, this whale used to gain a total profit of $2.016M from $BRETT , $TUBRO , $LINK , and… pic.twitter.com/hQtyiMuOLl

— Spot On Chain (@spotonchain) November 6, 2024

The large crypto trader now holds a massive $5 million worth of PEPE coins in their Ethereum wallet, with other assets not exceeding $135. Previously, this smart money investor made a $2 million fortune on several meme coins and altcoins, including Brett (BRETT), the AI-generated $TURBO, Chainlink (LINK), and other coins .

Sponsored

The trader incurred substantial losses on Ondo (ONDO) and Floki Coin (FLOKI). The decision to hold over 99% of the current digital assets in PEPE resembles a strong belief in the frog-themed meme coin, which is yet to restore its monthly high of $0.000001169.

PEPE’s Liquidation Anomaly Explained

During the bullish price streak, Pepe whipped up a new seven-day high but is still only halfway to reclaim the 30-day peak. As Donald Trump’s victory became clear, the upward momentum attracted crypto traders who believed PEPE had a political connotation .

The freshly piqued interest is clear in the derivatives markets, as speculative plays on PEPE increased by 101% to top $2.4 billion in press time. Intriguingly, the real-time 24-hour liquidation data from CoinGlass reported liquidated long PEPE price positions to exceed short-selling liquidations twice.

Overall 24-hour liquidation stats on Derivatives markets provided by CoinGlass

During a double-digit run, the situation where long traders lose twice the amount of short-selling traders is uncanonical. Derivatives traders, using leverage for their plays on Perpetual contracts, could have taken higher risks for a bigger multiplier, but PEPE’s price volatility could have simply wiped out both sides of the camp with the highest leverage.

On the Flipside

  • PEPE Coin has a massive total supply of 420.69T, significantly more than most popular meme coins, except for SHIB, which has 589T.
  • Such imbalance between liquidations on Pepe coin’s stablecoin-marginalized Perpetuals drives the use of obnoxious leverage multipliers.

Why This Matters

Large and profitable investors tend to be the first ones to spot an emerging crypto market trend.

Check out DailyCoin’s popular crypto stories:

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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