Pepe: Pump or Dump ? Watch the Whales
2024-11-22


Pepe coin, often the poster child for volatile meme coins, is showing signs of another major rally. Recent on-chain data, analyzed through our PEPE Whale Activity Indicator, highlights intriguing patterns of whale accumulation and distribution that may signal a bullish breakout is on the horizon.

Between November 10 and November 14, 2024: We saw a massive pump from PEPE, quite characteristically. On the 10th we saw an increase to 13 whale wallets followed by a 3 day drop off of 3 major whale wallets signaling a large selloff and price rally.

This Pump resulted in a final day of 1.1 trillion in PEPE being sold off. 

Interestingly enough the following day we see a huge reinvestment of 4.7 Trillion PEPE back into cold wallets of large whales and an increase in our whale wallet count back up to 12 wallets.

On the 18th we see a whale increase to 13 whales as seen before the initial pump.

The Turning Point: 

Fast forward 8 days, and the data reveals more bullish momentum:

The cumulative net flow has reached a -9.12 trillion PEPE, indicating that whales have been steadily withdrawing tokens from exchange wallets and transferring them into cold storage. 


What This Means for Pepe
The current pattern is strikingly similar to earlier accumulation-distribution cycles that preceded significant price rallies:

Accumulation Phase:
The 4.7 trillion PEPE accumulation on November 14, coupled with increased whale numbers during the following minor price dips, suggests that whales are preparing for another potential pump.


Key Metrics to Watch
As Pepe enters this critical phase, traders should monitor these metrics closely:

Cumulative Net Flow: Continued negative net flow signals sustained accumulation and a potential price floor.
Whale Count Trend: A further decline in whale numbers could indicate the beginning of distribution, setting the stage for a pump.
Price-Volume Correlation: Watch for volume spikes, as they often confirm the onset of price momentum.

Conclusion: A Pump in the Making?
Pepe's current on-chain data suggests the market is entering a whale-driven accumulation-distribution cycle. The 4.7 trillion PEPE accumulation day on November 14, combined with the -9.12 trillion PEPE cumulative net flow. 

For savvy traders, this could be a pivotal moment. Pepe is volatile, but with patterns aligning for another pump, now may be the time to prepare for the next big move. Will Pepe break out, or will the whales play another trick? Keep an eye on the charts—opportunity awaits.