Crypto Whales Buy the Dip as the Market Drops, Focusing on POL, ETH, and PEPE
- WBOYOriginal
- 2024-09-07 21:14:131041browse
In the first week of September 2024, the global cryptocurrency market fell by 5%. Many investors remained cautious, choosing not to trade. However, big investors, called crypto whales, used the dip to buy more coins. They focused on Polygon (POL), Ethereum (ETH), and the meme coin PEPE. This whale activity suggests they see value in these coins, even as the market slows down.
Key Points:
As the global cryptocurrency market experienced a 5% dip in the first week of September 2024, many investors remained on the sidelines, opting not to trade. However, large investors, known as crypto whales, utilized this market downturn to accumulate more coins. Their focus centered on Polygon (POL), Ethereum (ETH), and the meme coin PEPE.
Polygon (POL) Whales Ramp Up Token Acquisition
Following Polygon's completion of its token migration from MATIC to POL on September 4, there was a rapid increase in the number of whales acquiring POL. These whales, defined as wallets holding 100,000 to 1,000,000 POL, saw their count surge by over 90%. They now collectively hold 5% of the total POL supply, distributed across 33 wallets.
Despite some anticipating the token migration to trigger selling, these whales continued to accumulate. The price of POL remained at $0.38 during this period, but the growing interest from whales suggests their belief in the coin's potential for future price appreciation.
Ethereum (ETH) Whales Increase Holdings
Ethereum's price remained largely unchanged, hovering around $2560, yet whales were actively buying more. Large ETH holders, who control over 0.1% of the total Ethereum supply, increased their holdings by 38% in the past week. This indicates they purchased more Ethereum than they sold.
When whales accumulate, smaller investors tend to follow their lead, often pushing prices up. If this trend continues, Ethereum could break its resistance level and ascend toward a price of $2868.
PEPE Attracts More Whales
The Ethereum-based meme coin PEPE also garnered increasing attention from whales. In the past week, the number of wallets holding 1 million to 10 million PEPE reached a record high. These wallets, considered large investors, hit a new peak of 69,000.
Whales appear to be drawn to PEPE due to its current undervaluation. The coin's Market Value to Realized Value (MVRV) ratio stood at -5.67%. When this ratio is below zero, it indicates the current price of the coin is lower than the average price paid by all investors. This presents an opportunity for investors to acquire the coin at a discount, which is what these whales are capitalizing on.
Despite a 5% dip in the market, crypto whales expressed confidence in Polygon, Ethereum, and PEPE by continuing to buy these coins. Their sustained accumulation suggests they anticipate the prices of these coins to rise, even as others remained on the sidelines. This whale activity could signal upcoming price growth for these popular altcoins.
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