The memecoin whale made an over 52% return on its initial investment within a month, despite Pepe's price falling over 17% from its all-time high.
A whale, or a large memecoin holder, has made a nearly $5 million profit on the Pepe token within a month. Can Pepe's price continue to rise due to another incoming wave of retail interest?
Ok let's explain...
A savvy memecoin Whale made $4.95 million within a month, which is a 52% return on his initial investment, despite Pepe
$0.000014
price falling over 17% from its all-time high.
The whale has deposited all his Pepe holdings into a Binance wallet, according to a May 30 X post by Lookonchain, that wrote:
“In the past 10 minutes, a whale deposited all 660.7B $PEPE ($9.52M) bought a month ago into Binance, making ~$4.95M, with an ROI of 52%.”
Pepe whale deposit time. Source: Lookonchain
Following the over $9.5 million Pepe transfer to Binance, the whale’s wallet "0x546" is now only worth $161,449 worth of crypto, with over 96% of the holdings comprised of Compound (COMP) tokens, according to Coinstats.
Whale wallet “0x546.” Source: Coinstats
After a period of explosive memecoin gains, investor interest has seen a small decline. The cumulative trading volume of memecoins fell over 21% in the past 24 hours to $10.2 billion, compared to over $13 billion on May 28, according to CoinMarketCap data.
Despite having no intrinsic utility, memecoins can often create millionaires due to their volatile nature. At the end of May, another savvy trader made a $2.7-million profit in just three days on the Donald Trump-themed MAGA (TRUMP) meme token.
Pepe’s price fell over 4.4% in the 24 hours leading up to 1:45 pm UTC to trade at $0.00001437, according to TradingView. The token is down over 17% from its all-time high.
PEPE/USDT, 1-day chart. Source: TradingView
Pepe’s price reached a new all-time high on May 27. However, Pepe fractals hint at a potential 40% price correction if the price chart repeats the patterns from January 2024.
PEPE/USDT daily price chart. Source: TradingView
Nevertheless, Pepe’s current correction could also indicate the formation of a new hype cycle, which could help Pepe’s market capitalization reach over $10 billion, according to pseudonymous crypto analyst Davie Satoshi, who wrote in a May 30 X post:
Typically, wave 4 tends to be a triangle pattern and corrects about 23-30%...This might be the pattern we are seeing until a major launch for wave 5 which should take us to $10b and higher!”