On-chain data shows that a PEPE whale made a large deposit to Binance, something that could hamper the rally of the meme coin.
PEPE Whale has deposited $7.2 million on Binance
This is according to data from the cryptocurrency transaction tracker service Whale alarmthere has been a massive PEPE transfer on the Ethereum blockchain in the past day.
The transaction in question involved the movement of 3.94 trillion PEPE, which was worth nearly $7.2 million at the time the transfer took place over the network.
In general, only the whale entities are capable of making such big moves, so it is reasonable to assume that a whale investor would have been behind this transfer.
Due to the huge amount of capital involved in trades of these giant investors, they can sometimes cause noticeable fluctuations in the price of the asset.
As such, the whales’ movements may be something to watch out for. However, how such transfers can affect the market depends on the exact intent the investor had behind them.
Here are some additional details regarding the relevant transfer of PEPE whales, 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 it is an address that is not associated with a known centralized platform, making it likely that it is an investor’s personal wallet is.
The receiving address, on the other hand, appears to be a wallet affiliated with a centralized platform. More specifically, this address is connected to the cryptocurrency exchange Binance.
Transfers like this, where coins move from self-custodial wallets to exchanges, are called “exchange inflows.” Since one of the main reasons investors may deposit their coins on these platforms is for sales-related purposes, the exchange’s inflows can provide hints about the selling pressure in the market.
In the current case, since the whale has made quite a large influx to these platforms, it is possible that the price of the meme coin could suffer bearish consequences from it.
Of course, this would only be the case if the PEPE whale in question really made these deposits with sales in mind, and not for using any of the other services the Binance platform offers.
Although, given that the exchange inflow came after a rapid 17% increase in the value of the meme coin, there is likely a good chance that the whale will indeed want to sell and capitalize on 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 did indeed sell the coins, the market currently has enough buying pressure to simply absorb the sale.
Another possibility, however, is that the whale has only made the deposit up front and has not yet actually had the trigger to sell the stack, perhaps to see if the price continues to rise. If this is the case, the price would naturally feel a bearish effect later on.
PEP price
At the time of writing, PEPE is trading around $0.000001736, up 11% over the past week.
PEPE has shot up during the past day | Source: PEPEUSD on TradingView
Featured image from iStock.com, chart from TradingView.com
