On-chain data shows a PEPE whale has made a large deposit to Binance, something that could provide an impedance to the meme coin’s rally.
PEPE Whale Has Deposited $7.2 Million To Binance
According to data from the cryptocurrency transaction tracker service Whale Alert, a massive PEPE transfer has occurred on the Ethereum blockchain during the past day.
The transaction in question involved the movement of 3.94 trillion PEPE, which was worth almost $7.2 million at the time the transfer went through on the network.
Generally, only the whale entities are capable of making such large moves, so it’s reasonable to assume that a whale investor would have been behind this transfer.
Due to the massive amount of capital involved in transactions of these humongous investors, they can sometimes cause noticeable fluctuations in the price of the asset.
As such, the movements of the whales can be something to watch out for. How such transfers may affect the market, though, depends on the exact intent the investor had behind it.
Here are some additional details regarding the relevant PEPE whale transfer, which may shed some light on what the whale wanted to achieve with the move:
Looks like this large transfer on the Ethereum blockchain only cost a fee of about $2.5 to go through | Source: Whale Alert
As you can see above, the sending address in the case of this PEPE transfer is an unknown wallet, meaning that it’s an address unattached to any known centralized platform, making it likely that it’s the personal wallet of an investor.
The receiving address, on the other hand, looks to be a wallet affiliated with a centralized platform. More specifically, this address is connected to the cryptocurrency exchange Binance.
Transfers like these, where coins move from self-custodial wallets to exchanges are called “exchange inflows.” As one of the main reasons why investors may deposit their coins to these platforms is for selling-related purposes, exchange inflows can provide hints about the selling pressure in the market.
In the current case, as the whale has made a rather large inflow to these platforms, it’s possible that the price of the meme coin may suffer bearish consequences from it.
Naturally, this would only be so if the PEPE whale in question truly made these deposits with selling in mind, and not for using any of the other services the Binance platform offers.
Though, considering that the exchange inflow has occurred following a rapid 17% rise in the meme coin’s value, there is probably a fair chance that the whale is indeed looking to sell and take advantage of this profitable exit opportunity.
So far, however, the PEPE price has only moved mostly sideways since the whale made the transfer, implying that, if the whale indeed sold the coins, the market currently has enough buying pressure that the selling has simply been absorbed.
Another possibility, though, may be that the whale has only made the deposit in advance and is yet to actually the pull trigger on selling the stack, perhaps to see if the price goes up further. Naturally, if this is the case, the price would feel a bearish effect from this later down the line.
At the time of writing, PEPE is trading around $0.000001736, up 11% in the last week.
PEPE has shot up during the past day | Source: PEPEUSD on TradingView
Featured image from iStock.com, chart from TradingView.com