1. Why is the whale adding to his position at this time?
This guy is currently down 10.1 million USD, with his position shrinking by more than half, but he is still adding to his position! This move is a bit 'headstrong'. Either he thinks PEPE has hit the bottom and is ready to buy in big; or he genuinely believes in PEPE and thinks it can rise again in the future.
His previous trading success rate was 100%, indicating he truly has some skills. Although he’s currently facing losses, he might feel an opportunity has come and wants to lower his average cost by adding to his position, waiting for a rebound to recover some losses.
2. What’s the current situation with PEPE?
PEPE is currently priced at $0.00000772, down 55.6% from his entry cost of $0.00001735, which is indeed quite miserable. Meme coins, as everyone knows, can rise crazily and fall even crazier, completely depending on market sentiment.
Recently, the overall market hasn’t been performing well, and meme coins are particularly unpopular, with a significant drop in interest. The fact that this whale is losing so much also indicates that meme coins are not something average people can play with; the risks are too high.
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3. What is the big whale betting on?
He may feel that PEPE has already dropped enough, and there’s limited space for it to fall further, so he chose to add to his position. This kind of action is similar to 'buying more the lower it goes', betting on a reversal in market sentiment.
Another possibility is that he thinks PEPE will have new developments soon, like community activities or a resurgence in market interest. When the price rises, he can make a profit.
4. What does this mean for us retail investors?
Don’t blindly follow trends: whales have money and resources and can afford losses; we retail investors cannot play like that. Meme coins are too volatile, and a small mistake can get you stuck.
Be cautious with meme coins: coins like PEPE rise and fall purely based on sentiment and speculation, with no fundamental support. If playing, make sure to control your position and don’t invest all your money at once.
Build your position in batches: If you really believe in a certain coin, you can buy in batches instead of going all in at once. This way, if it drops, you can average down; if it rises, you won’t miss out.
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5. What will the market look like in the future?
The popularity of meme coins is closely related to the overall market sentiment. If a bull market comes, coins like PEPE might be hyped up, but no one can say how much it will rise.
The whale's increased position may draw some people’s attention back to PEPE, but ultimately it still depends on whether market funds and sentiment can keep up. If no one is playing, one whale alone can’t drive it up.
This whale's action of adding to his position is indeed quite aggressive, but it also reminds us that the risks of meme coins are really high. If you’re not someone who can handle big fluctuations, it’s best not to get involved. In investing, it’s safer to be cautious; don’t just think about getting rich quickly, focus on not losing too much first.
