The past week has been a wild ride for meme coins, with Dogwifhat (WIF) and PEPE in the spotlight amid market chaos. WIF, a popular meme token on Solana, dropped 25% in value, falling from its weekly high of $3.4.
Another Solana-based meme coin, POPCAT, also saw a significant decline of 34%, hitting its lowest levels since mid-April. Meanwhile, the Ethereum-based PEPE token, which had surged to new heights earlier in the week, faced an 18.5% sell-off, shaking investor confidence.
Whale Actions Influence Meme Coin Market Amidst Turmoil
Against this grim backdrop, the crypto space was buzzing with news about the actions of the largest holders of these cryptocurrencies, which significantly influenced these price perturbations.
Lookonchain’s reports revealed that a whale strategically moved to offload 1.7 million WIF at a loss, swapping them for other meme coins on Solana following the price dip. This action not only impacted WIF but also influenced the prices of other meme tokens, including BONK.
Another whale also incurred losses by selling WIF and POPCAT, further contributing to the volatility in the meme coin market.
WIFUSDT_19 May 2024_ Source: TradingView
Whale Moves Trigger Meme Coin Market Volatility
Spot On Chain’s insights added another layer of intrigue, highlighting a multisign wallet that deposited a substantial amount of PEPE to Binance in an attempt to stop losses. This move contributed to a 6% price drop. This whale’s trading history suggests a pattern of contributing to sharp price fluctuations when trading PEPE.
Source: Spot On Chain
In the wake of these developments, meme coin investors are left with several questions. Will meme coins like WIF and PEPE be able to recover from these significant losses? What strategies will major token holders employ to navigate the current market volatility?
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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