Key Insights
- A new anonymous wallet deposited 701K USDC into Hyperliquid, opening $4.5M in leveraged longs.
- Positions include $2.5M in PEPE and $2M in WIF, showing strong bullish sentiment.
- The rising search interest for memecoins indicates that retail curiosity has increased lately.
On-chain data shows that a new whale trader just splashed on Hyperliquid. The wallet, which was created on September 5, deposited 701,000 USDC. It immediately opened leveraged long positions in PEPE and WIF.
LookOnChain said the trader went 10x long and took on about $4.5 million in notional exposure. The positions include 258 million PEPE worth $2.5 million and 2.47 million WIF worth $2 million.
The trader, speculated to be the infamous James Wynn, used 10x leverage with only $450,000 of the initial deposit.
PEPE and WIF Attract Whale Attention
The decision to go long on PEPE and WIF shows that speculation in meme coins has increased lately.
PEPE is known for wild price swings and is driven by online community hype. Conversely, WIF is linked to the Solana ecosystem and has held investor interest despite general market corrections.
The whale’s positions indicate confidence in both tokens’ abilities to deliver short-term gains. HyperLiquid said a 10% move upward could double the margin invested. However, liquidation risk could rise strongly if prices decline too quickly.
Meme Coin Market Shows Signs of Revival
More than this single whale, the general market trends indicate that memecoins are regaining attention. Google Trends data shows searches for “memecoin” recently hit a score of 57, the highest level in months.
While far below the January high of 100 during the TRUMP token frenzy, the rise shows that retail curiosity is returning.
This revival looks more measured than earlier in the year. Influencers and Crypto Twitter personalities are quieter this time, and hype-driven promotions have slowed down lately.
Analysts argue this may set the stage for a healthier market with less extreme volatility than past cycles.
Whale Moves Can Be Signs Of Market Changes
Large trades act as entry signals of market sentiment. The $4.5 million long on PEPE and WIF shows that the market is regaining its bullish expectations. Retailers tend to react to these changes and could start investing soon.
Most meme projects are still speculative despite the improved infrastructure, like launchpads and trading tools. This means that gains can be fast, but losses can be just as quick.
How Traders Can Approach the Current Market
Traders watching PEPE should note that support has historically formed near $0.000007, alongside resistance around $0.00001. Putting in place monitoring of these levels can help identify entry points.
Performance tends to correlate with Solana’s price for WIF, which gives traders more signals to watch. Technical indicators like RSI and MACD are also great to watch. An RSI above 70 shows overbought conditions, while divergences might hint at reversals.
The daily RSI for PEPE currently sits at 42, while WIF’s sits at 45. This indicates bearish but still neutral market sentiment. Institutional flows into meme coins are also rising, and whales and funds are increasingly looking into these tokens.
This indicates that the market is no longer driven only by retail speculation. If whale activity continues, it could bring more liquidity and decisive price action in pairs like PEPE/USDT and WIF/USDT.
What Next From Here?
Memecoins are still a speculative bet, in any case. However, they continue to attract traders who thrive on volatility. Whales are making leveraged moves in favour of the memecoins.
Also, retail curiosity is rising; the market could be entering another active phase. Whether this turns into a full-scale boom depends on market conditions.
However, whales like the one on Hyperliquid set the tone for now. At the same time, retail traders look for opportunities to follow.
