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A Pepe (PEPE) whale has shocked the broader cryptocurrency community with its market activity. Lookonchain, an on-chain analytics platform, noticed and shared the transaction in a post on X.
PEPE whale activity reflects market caution
Notably, the whale deposited 150 billion PEPE tokens valued at $2.72 million into crypto exchange Binance. The development suggests that the trader likely might execute a stop-loss order. The whale intends to limit losses by selling the PEPE tokens when its price falls to a specific level.
After the market drop, a whale deposited 150B $PEPE($2.72M) into #Binance to stop loss.
— Lookonchain (@lookonchain) December 19, 2024
This whale withdrew 150B $PEPE($2.94M) and 60B $SHIB($1.52M) from #Binance on Nov 28.
At current prices, the whale is facing a loss of $219K on $PEPE and $136K on $SHIB.… pic.twitter.com/kGDa9K7Z7z
Interestingly, the whale had earlier, on Nov. 28, withdrawn the same amount from the crypto exchange. However, the 150 billion PEPE was worth $2.94 million. The whale action when the withdrawal occurred hinted at a holding move.
Now, with PEPE’s price performance in significant decline, the whale’s deposit might mean it has decided to sell the asset.
PEPE trades at $0.00001927 as of this writing, representing a 9.55% dip in the last 24 hours. The whale has suffered a loss of over $219,000 on PEPE tokens at the current market price.
Analysts say it is, therefore, understandable to take a stop-loss action. This could mitigate further losses on the asset as its value plunges downward.
Community reactions and lessons on market timing
The development has triggered a reaction from the broader crypto community — notably, a user, Human.AI.Blockchain (@humanDAO), highlighted that the incident serves as a reminder to all players in the crypto sector. According to them, it reveals that even big investors cannot always time the market perfectly.
However, others consider the move as being too hasty. They opine that the asset could post a rebound eventually, and he should not have capitulated. These latter groups are optimistic about a bullish cycle with the replacement the Securities and Exchange Commission (SEC) Chair announced.
The crypto space's divergent views reinforce the need for individuals to do their research. They emphasize the volatility of market conditions and the different approaches that traders adopt to manage price fluctuations.