Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Within an hour, a newly created wallet unexpectedly withdrew a staggering 150 billion PEPE (worth roughly $2.94 million) and 60 billion SHIB (worth $1.52 million) from Binance. Large-scale withdrawals of this kind frequently raise concerns about their motivations, suggesting possible changes in market sentiment or impending events for these tokens.
Based on an analysis of the PEPE chart, the token has been in a strong rally lately, reaching a peak before retracing its steps. The decreasing trading volume points to a possible slowdown, even though PEPE is still above critical moving averages, suggesting a bullish structure. The large withdrawal may indicate preparation for off-exchange transactions, which frequently seek to avoid affecting the market price or whale accumulation, a move usually seen prior to a price spike.
Following a significant breakout previously, the token has been forming a bullish triangle on the SHIB chart. With extra support from the 50 EMA, it is still above its main support levels. A strategic move by major holders — the withdrawal of 60 billion SHIB — might also portend optimism for future price movement or use in decentralized applications outside of Binance. When viewed in a larger context, such extensive withdrawals may have a number of effects:
Related
Whale activity: Large token withdrawals frequently signify the accumulation of whales. Whales might be getting ready for long-term storage or other tactical applications.
DeFi utilization: The transfer of money from centralized exchanges to wallets may indicate plans for decentralized finance protocols, such as staking.
Market sentiment: Although significant withdrawals may at first raise fears of sell-offs, they may also indicate a growing level of confidence in the asset’s potential for future performance. Keeping an eye on wallet activity and on-chain data is still crucial for traders and investors.
Based on volume recovery and general market conditions, the PEPE and SHIB charts both point to short-term consolidation with the possibility of additional upside. These actions highlight how crucial it is to closely monitor whale behavior because it frequently precedes important market movements.
Credit: Source link
