A month ago, when PEPE dropped to 0.000007 dollars, it triggered a strong accumulation phase, leading to a 36% recovery and pushing the price to a four-month high.
Although it has recently adjusted slightly, this memecoin still maintains about a 57% increase compared to its most recent peak, keeping most investors in a profitable state. With 87% of the supply held by 1% of top wallet addresses, it's clear that whales are still holding a significant amount of unrealized profits.
However, this also increases the risk. At the time of writing, the price structure of PEPE is relying on a rather fragile support level. If this level is broken, whales, even without panic, may begin to take profits to avoid being caught in the FOMO wave that is gradually cooling down.
Of course, the price level of 0.00001 dollars has created strong dip-buying twice, but so far there has not been a convincing rebound. If the price continues to break down this level, it will not only form the fourth consecutive lower low, but could also trigger widespread profit-taking from whales.
Whales distribute when PEPE tests structural limits
In fact, whale activity has started to emit early warning signals. SpotOnChain has tracked significant movements, where one whale sent 595.2 billion PEPE (worth 6.52 million dollars) to the Binance exchange. This whale took profits of 1.57 million dollars (+32%) after capitalizing on the previous accumulation cycle.
Notably, this whale's cost basis is 0.00000832 dollars, further reinforcing the view that short-term whales are gradually exiting the market as the price increase begins to stagnate near local peaks.
This is not random profit-taking behavior, but a calculated action – occurring just as PEPE struggles to reclaim former peak range.
However, the key point is that the position has not been fully closed. This whale still retains 104.4 billion PEPE (worth about 1.15 million dollars) in another wallet, with unrealized profits of around 320,000 dollars. This puts additional pressure on the support level of 0.00001 dollars.
The upcoming sessions will be very important. If PEPE creates a lower low below this threshold, it is highly likely to trigger a position rotation from the whales – not out of panic, but to preserve the increasingly narrowing profit margins.
Therefore, closely monitoring the price chart is crucial at this moment – this is the time when smart money decides: hodl or exit.
