On-chain metrics confirmed the whale's bullish bet
James Wayne, the whale and renowned trader at Hyperliquid, converted some of his Bitcoin profits into PEPE, making a $10 million bullish bet on the memecoin.
PEPE
Source: Lookonchain/X
Wayne withdrew about $28 million from his Hyperliquid profits over the weekend, with Lookonchain analysis indicating that the trader's profit percentage was 45%. This raises the question: Will the PEPE bet succeed, and is it advisable to invest?
Demand assessment for PEPE and risk levels
PEPE
Source: Glassnode
On-chain signals supported Wayne's bullish bet on the meme coin. According to Glassnode's report on net trading position changes, an average of 10 trillion PEPE tokens were withdrawn from exchanges in May.
Compared to investors withdrawing 20 trillion from discounted PEPE tokens last December, the accumulation in the second quarter represents about half the demand in late 2024. This means traders were optimistic about the meme coin.
From a profitability perspective, about 65% of coin holders (285,000 addresses) were profitable at the time of publication, according to IntoTheBlock data. This was not surprising, as the meme coin recovered over 140% in May, rising from $0.0000059 to $0.000014.
Despite the tremendous gains made over the past three weeks, profitability levels were not in a "high-risk sell-off" position, based on historical data. In early and late 2024, PEPE reached its local peak when profitability ranged between 90% and 97% (green highs).
PEPE
Source: IntoTheBlock
At the time of writing this report, the profitability rate of 65% indicated that bullish speculators could see further gains if the upward momentum continues.
However, the main resistance and potential supply area, along with the "high-risk sell-off" zone, was at $0.000016-$0.000018. Approximately 103 trillion PEPE tokens (the large red bubble) were bought at this level, and investors may choose to break even if the price reaches this area.
PEPE
Source: IntoTheBlock
Resistance on-chain was also evident on price charts. The price peaked last May, prompting BBP to retreat to its highs in March 2024 at $0.000008.
So, if this barrier continues, BBP may retreat to the moving averages or drop to a lower support level.
However, surpassing the supply area will increase the likelihood of reaching $0.00002 - an additional gain of 27% if achieved.
BBP
Source: BBP/Tether, TradingView
Overall, BBP may rise, but it needs to surpass the resistance level above $0.000016 to continue climbing. While on-chain market indicators tend to be bullish, the barrier between $0.000016 and $0.000018 will be a key level that might attract profit-taking.
