A wallet reportedly linked to Justin Sun received 7.2 trillion PEPE tokens, valued at roughly $28.44 million, from Poloniex, sparking renewed interest in whale accumulation.
A crypto commentator on X highlighted the transaction, revealing that the wallet’s total holdings had reached 7.268 trillion PEPE, worth approximately $32.63 million at the prevailing market price.
Interestingly, this massive token transfer sparked speculation around Justin Sun’s potential involvement in PEPE ahead of another memecoin cycle.
It is worth noting that although the transaction did not confirm fresh purchases, its scale renewed market attention to PEPE’s whale activity.
Notably, the development also aligned with renewed exchange withdrawals, providing another dimension to the memecoin’s market activity.
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PEPE spot outflows return after four days
Aside from the whale transfer, PEPE’s spot market recorded a notable shift in exchange flows.
In particular, after four consecutive days of positive Spot Netflows, the market flipped negative, recording approximately $2.17 million in net outflows at reporting time.
This flow reversal suggested that withdrawals exceeded deposits, which in turn reduced the amount of PEPE available on exchanges.
The positive netflows previously reflected greater exchange deposits, which had potentially increased the supply available for selling.
The recent reversal therefore validated the accumulation story surrounding the reported whale movement.
Still, exchange withdrawals alone did not establish a stronger buying demand or guarantee an immediate price rebound.
Derivatives traders favor longs despite slowing activity
Contrastingly, the derivatives activity around PEPE weakened despite traders maintaining a slight bias for bullish positions.
According to CoinGlass analytics, the memecoin’s daily trading volume had declined 28.56% to $396.07 million. However, Open Interest slightly increased 1.21% to $316.97 million at the time of reporting.
This notable divergence suggested that the outstanding positions had expanded slightly in spite of the shrinking derivative trading activity.
The 24-hour Long/Short Ratio meanwhile sat comfortably at 1.067, highlighting a modest advantage for long positions.
However, on OKX, the same ratio stood around 2.13, which suggested a stronger preference for longs among account holders.
Additionally, the liquidation figures on the other hand offered further insight into the market’s positioning, with the shorts reaching $464.35K and $336.80K in longs.
The figures therefore reflected greater losses among the bearish leveraged positions.
Can PEPE break through $0.0000050 resistance?
On the weekly timeframe chart, Pepe [PEPE]’s structure highlighted an emerging recovery attempt as buyers defended lower price levels, reclaiming the $0.0000040 threshold.
The memecoin notably traded around $0.00000450, gaining approximately 15% during the ongoing weekly candle.
Its next primary obstacle stood at $0.0000050, a resistance level that had previously rejected upward price appreciation.
Encouragingly, the Directional Movement Index favored the bulls, with +DI signal at 28.05 against the -DI signal at 14.08.
Additionally, the ADX indicator reading of 22.55 implied an emerging directional trend, although its strength remained moderate.
The Parabolic SAR, on the other hand, appeared below the prevailing market price, with the indicator standing at $0.00000289.
These signals together favored the ongoing price recovery, even though PEPE still faced overhead resistance.
Ultimately, a strong weekly close above the $0.0000050 support could validate the bullish outlook and encourage further gains.
Final Summary
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- A Justin Sun-linked wallet received 7.2 trillion PEPE as spot netflows turned negative.
- Bullish indicators strengthened as PEPE prepared to challenge the $0.0000050 resistance level.
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