158 Billion PEPE Tokens Withdrawn from Binance: Price Impact

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In Brief

  • Wintermute withdrew 158 billion PEPE tokens from Binance, impacting liquidity.
  • The transaction worth about $1.19 million could lead to a price correction for PEPE.
  • Crypto market volatility may reverse the trend if PEPE sustains above the risk line.

Wintermute, a global algorithmic market maker, has withdrawn an astonishing 158 billion PEPE tokens from Binance.

This transaction, valued at approximately $1.19 million, signifies a remarkable shift in the meme coin’s liquidity.

Billions of PEPE Tokens on the Move

Wintermute’s recent transaction reflects its strategic positioning within the crypto market. Especially when understanding that the firm embodies high-frequency market-making in the industry. Its algorithms and business models, distinct from traditional OTC or dark pool market makers, aim to enhance market efficiency and liquidity.

The substantial withdrawal of PEPE tokens by Wintermute from Binance has triggered discussions among investors about how it may affect the meme coin’s market valuation. Indeed, Wintermute collaborates with more than 50 cryptocurrency exchanges. It usually withdraws assets from one exchange to trade on another to benefit.

For instance, on Binance, moving the price of PEPE by 2% requires an investment of $1.90 million. In contrast, on exchanges like Bybit, HTX, and Kraken, only $300,000 can achieve the same price movement. This tactic is a calculated maneuver used by market makers to generate profits.

158 Billion PEPE Tokens Withdrawn from Binance: Price Impact
PEPE Market Depth. Source: CoinMarketCap

Moreover, the Tom Demark (TD) Sequential indicator has flashed a sell signal on PEPE’s three-day chart, hinting at potential profit-taking and a subsequent price correction. It suggests that PEPE could see a downturn to $0.00000629 or even $0.00000411.

Even crypto analyst Lark Davis recently talked about the potential of a market top in the meme coin sector.

“Meme coin season is at its peak. Bloomberg recently shared a post about PEPE and WIF with its 5.1 million Instagram followers. Is that a top signal?,” Davis said.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

158 Billion PEPE Tokens Withdrawn from Binance: Price Impact
PEPE Price Performance. Source: TradingView

However, the cryptocurrency market, known for its volatility, holds possibilities for reversal. A sustained three-day candlestick close above the setup’s risk line at $0.00001340 could negate the bearish outlook. It could catalyze an uptrend, pushing PEPE towards $0.00002144 or even $0.00003050 instead.

Read more: Pepe: A Comprehensive Guide to What It Is and How It Works

This recent development highlights Wintermute’s role in shaping the liquidity and efficiency of cryptocurrency markets. Although the firm facilitates smoother market transactions, it can impact price movements and investor strategies.

Top crypto platforms | March 2024

This article is sourced from the internet: 158 Billion PEPE Tokens Withdrawn from Binance: Price Impact

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