- Hyperliquid whale opened a $10M long position on PEPE
- On-chain metrics backed the whale’s bullish bet
Renowned Hyperliquid whale and trader James Wynn has rotated some of his Bitcoin profits to PEPE, with a $10 million bullish bet on the memecoin.
Source: Lookonchain/X
Wynn withdrew about $28 million in profits from Hyperliquid over the weekend, with Lookonchain’s analytics noting that the trader has a 45% win rate. This begs the question – Will the PEPE bet play out, and should you ape in?
Assessing PEPE’s demand and risk levels
Source: Glassnode
On-chain signals supported Wynn’s bullish bet on the memecoin. According to Glassnode’s Exchange Net Position Change, an average of 10 trillion PEPE tokens were withdrawn from exchanges in May.
Compared to last December’s dump that saw investors scoop 20 trillion discounted PEPE, Q2’s accumulation was about half of late 2024’s demand. This meant traders were bullish on the memecoin.
From a profitability perspective, about 65% of holders (285K addresses) were in profits at press time, as per IntoTheBlock’s data. This wasn’t surprising because the memecoin has recovered by over 140% in May, surging from $0.0000059 to $0.000014.
Despite the massive gains over the past three weeks, profitability levels weren’t in a risky ‘sell-off’ position based on historical data. Back in early and late 2024, PEPE hit its local peaks when profitability hit 90%-97% (green spikes).
Source: IntoTheBlock
At the time of writing, the 65% profitability meant that bulls may still see more gains if the uptrend momentum continues.
That being said, the main key resistance and potential supply and ‘sell-off’ zone was at $0.000016-$0.000018. About 103 trillion PEPE tokens (larger red bubble) were bought at this level, and investors may opt to break even if the price tags the zone.
Source: IntoTheBlock
The on-chain resistance was also visible on the price charts. It was last May’s price peak and triggered PEPE’s pullback to March 2024 highs of $0.000008.
So, if the hurdle persists, PEPE could retrace to the moving averages or lower support.
However, clearing the supply zone would increase the odds of tapping $0.00002 – An extra 27% gain if hit.
Source: PEPE/USDT, TradingView
Overall, PEPE may rise higher but must clear the resistance above $0.000016 to surge further. While on-chain indicators leaned bullish, the $0.000016-$0.000018 hurdle would be a key level that may attract profit-taking.
