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PEPE Re-Enters Top 100 Rankings as $500K Token Distribution Begins – Is It Bullish for Price

source-logo  beincrypto.com 20 November 2023 14:58, UTC

The popular meme coin’s price increased by 10% over the weekend as crypto whales continued to invest millions in PEPE. On-chain analysis explores how an impending 418 billion free token distribution could impact PEPE price action in the weeks ahead.

PEPE has experienced a significant capital inflow from crypto whales over the past week. Is it a precursor to a major price breakout?

Crypto Whales Have Invested $113 million in PEPE Within the Past Week

PEPE price and other top memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have performed strongly over the past month. Recent on-chain movements suggest that crypto whales’ trading activity is a major driver behind the meme coin market rally.

The IntoTheBlock on-chain chart below illustrates that whale investors holding 10 trillion to 100 trillion PEPE took center stage. Between November 12 and November 20, they added a staggering 94.1 trillion tokens to their holdings.

PEPE Balances By Holdings | Source: IntoTheBlock

The balance by holdings is a metric that groups investors on a blockchain network by the number of tokens in their custody. When a cluster of whales increases their balances during a rally, it indicates they are positioning for more gains.

Valued at the current market price of $0.0000012, the 94.1 trillion PEPE coins acquired last week are worth approximately $113 million.

Evidently, this large accumulation has impacted the PEPE price positively. If the whales keep holding, it could climb even higher.

PEPE Team is Set to Distribute $500,000 to Binance Users

On November 20, the PEPE team moved 418 billion tokens, worth approximately $500,000, into the Binance wallet. The team had clarified that the tokens would be distributed to users on the exchange through different campaigns. Which could trigger bullish action among retail investors.

“418B $PEPE tokens are about to be transferred from the team wallet. These tokens are being sent to @binance Earn and will be rewarded to Binance users through various campaigns over the coming months that we are excited to share with you!” PEPE team.

PEPE Token Transfer | Source: LookOnchain/X

Shortly after the tweet, on-chain transaction tracker Lookonchain confirmed the transaction. The image above shows how a multi-sig wallet linked to the PEPE team had moved a total of 418.4 trillion tokens into an 0x698 address.

Typically, when blockchain networks allocate such a significant amount of funds to community campaigns, it spurs network activity among retail investors.

If this thesis holds true, the bullish retail pressure and rising whale demand could push the PEPE price upward in the days ahead.

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PEPE Price Prediction: Can it Reclaim $0.000002

With their profits mounting, most of the bullish whales may now be less inclined to sell. If the upcoming campaign boosts retail traders’ sentiment, it could propel the PEPE price toward the $0.000002 mark.

The Global In/Out of the Money (GIOM) data, which groups the current PEPE holders according to their entry prices, also confirms this prediction.

It shows that 27,650 addresses had bought 28.16 trillion PEPE at the average price of $0.000001. If those investors keep holding, the PEPE price could accelerate toward $0.000002, as predicted.

PEPE Price Prediction | GIOM data | Source: IntoTheBlock

Still, the bears could invalidate that positive prediction if the PEPE price dips below $0.0000007. But, in that case, the 9,330 addresses that bought 43.96 trillion PEPE at the average price of $0.000001 could offer initial support. If those investors hold firmly, the PEPE price will likely avoid a major reversal.