Whale uses 3x leverage to bet on PEPE, with floating profit of 2 million, driven by a market sentiment reversal

A certain whale opened a 3x leveraged long position on PEPE two days ago, and currently has an unrealized profit of over $2 million. It is worth noting that this whale previously incurred a loss of about $480,000 in ETH trading, yet now chooses to bet on PEPE with a more aggressive leverage strategy. This shift not only reflects PEPE’s recent strong performance but also exposes the risks and opportunities inherent in high-leverage trading.

Whale’s Strategy Shift

From Stop-Loss to Aggression

According to on-chain monitoring data, this whale’s trading trajectory is quite clear: first closing a position in ETH with a loss of $480,000 to stop the loss, then immediately switching to a high-leverage long on PEPE. This “stop-loss then switch” approach is not uncommon among whales, but choosing a 3x leverage indicates a strong bullish expectation for PEPE’s future performance.

Risks Behind Unrealized Gains

An unrealized profit of $2 million sounds impressive, but it’s important to understand the dual nature of leverage. With 3x leverage, PEPE’s price would only need to drop about 33% for this profit to vanish entirely. Such volatility is not unusual in the crypto market.

PEPE’s Strong Performance

Recent Price Trends

PEPE has surged nearly 68% in the past 7 days, which is the main reason attracting whale attention. Such gains are enough to prompt market participants to change their strategies.

Market Fundamentals

According to the latest data, PEPE is currently ranked 34th by market cap, with a 24-hour trading volume of approximately $114 million. Although the volume has decreased by 35.20% compared to the previous day, liquidity remains relatively sufficient. PEPE’s fully diluted market cap is $293 million, accounting for 0.09% of the market.

Market Signal Indicators

Other Whales’ Movements

This whale is not an isolated case. On-chain monitoring shows that another whale also closed ETH long positions (with a loss of about $470,000) during the same period and switched to a 3x leveraged PEPE long, with a position size of $12.8 million, becoming the largest PEPE long on-chain. This indicates multiple large funds made similar strategic adjustments simultaneously.

Overall Market Rebalancing

Broader market signals show that the bullish camp is adjusting its strategy. Some whales are reducing high-leverage long positions to realize profits, while adding new positions in emerging hot coins. This defensive rebalancing contrasts with the aggressive capital attracted by PEPE.

Risks to Watch

• Leverage Liquidation Risk: 3x leverage may face liquidation pressure in extreme market conditions
• Liquidity Risk: Although PEPE’s trading volume is sufficient, large-scale liquidations could cause slippage
• Market Sentiment Risk: Meme coins’ price movements are often driven by market sentiment and are hard to predict
• Historical Reference: The same whale previously suffered losses in ETH, indicating that even large funds can make mistakes

Summary

This trade reflects an important signal in the current crypto market: capital is shifting towards new hot spots, from traditional BTC and ETH to Meme coins. The whale’s transition from stop-loss to aggressive long positions not only demonstrates a market sentiment reversal but also shows that funds have expectations for PEPE’s future performance.

However, a $2 million unrealized profit under 3x leverage is not guaranteed. The whale’s past record suggests that even large funds can err. Going forward, attention should be paid to whether PEPE can break through recent highs and how leveraged positions are unwound. For ordinary investors, this case serves as a reminder: high-leverage gains are tempting, but the risks are equally significant.