Memecoin season status according to SHIB and PEPE

• Two whales were seen moving a significant portion of their holdings to the exchange.
• Examining on-chain indicators revealed contrasting signals.

Major memecoins have been trending lower over the past few days of trading, sparking concerns and speculation about a possible end to the wild bull market for various dog-and-frog-themed tokens.

The second-largest memecoin, Shiba Inu (SHIB), is down 12% since March 9, while the frog-themed Pepe (PEPE) is down nearly 5% over the same period, AMBCrypto discovered using CoinMarketCap.

Have whales discovered the peak of a bull market?

What caused anxiety in the Mimcoin community was the recent movement of a significant portion of holdings from whales to exchanges.

According to Spot On Chain, an on-chain data tracker, a smart money investor deposited 200 billion SHIB tokens, worth about $6.5 million, at Gemini and Crypto.com on March 12.

Whales in particular were early buyers, accumulating 15.2 trillion SHIB in August 2020. The smart investor was making an estimated profit of $129 million with $2.6 trillion still in the cat.

In the second case, a whale transferred 500 billion Pepe tokens worth $4 million to the OKX exchange. If you decide to sell, you will make a profit of $3.39 million.

Typically, large amounts of coins moving from whale wallets to exchanges are a sign of an imminent sell-off, which leads to significant price adjustments.

It’s Not As Simple As You Think

AMBCrypto looked at other key indicators of the aforementioned tokens to understand the market sentiment.

According to data obtained from Santiment, the supply held by top Pepe wallets has decreased since the beginning of the week. In contrast, the supply of SHIB whales increased at the same time.

Surprisingly, exchange reserves for both meme tokens have decreased over the past few days. This runs counter to previous concerns about whale dumping in the wider market.

Source: Santiment

Read SHIB’s 2024-25 Price Forecast

SHIB Whale Bearish

Additionally, AMBCrypto’s analysis of Hyblock Capital data shows that top whales have been reducing their long-term exposure to SHIB over the past week.

They justified their profit-taking by signaling that they were not too optimistic about SHIB’s move northwards in the near term.

Source: Santiment