On-Chain Analysis Shows Whale Opens 3x Leveraged PEPE Position with $2 Million in Unrealized Gains

A major whale in the cryptocurrency market has opened a leveraged long position in PEPE, a meme-based token, with unrealized profits now exceeding $2 million. According to data from OnchainLens, the investor used a 3x leverage to open this position, which now represents significant gains as the token's price has climbed. The whale previously held a large ETH long position but closed it at a loss of $488,069. After liquidating the ETH trade, the investor redirected the capital into PEPE, which has shown strong price performance in recent weeks. This shift in strategy highlights a pivot from stablecoins and Bitcoin to altcoins as the new year begins. On-chain activity suggests that institutional and experienced traders are increasingly confident in the short-term price movement of PEPE. The token has gained 66.1% over the past week and 49.1% over the past month. This momentum aligns with broader market optimism and a potential reallocation of capital from Bitcoin to altcoins following months of consolidation.

Why Did the Whale Make This Move?

The whale's decision to open a leveraged position in PEPE reflects growing confidence in the token's price trajectory. Analysts suggest that whales often signal market sentiment through their trading behavior. In this case, the whale's exit from ETH and entry into PEPE indicates a belief in the token's potential for further gains. Such movements are not uncommon in the crypto space. Investors frequently shift capital between assets based on technical signals, sentiment, and macroeconomic factors. The whale's move may also be a response to recent geopolitical events, as capital rotates into less volatile altcoins amid broader market uncertainty.

How Did the Market React to the Whale's Activity?

The PEPE market has responded positively to the whale's entry. The token's price has risen steadily, reaching $0.057093 as of January 5, 2026. With a current market capitalization of $2.96 billion, PEPE has outperformed many major cryptocurrencies in recent weeks. The whale's leveraged position has also drawn attention from on-chain analysts and retail traders. The $2 million in unrealized gains suggests renewed interest in meme coins after a period of relative stagnation. This trend could indicate the start of a new altseason, where smaller tokens see increased buying pressure and price action.

What Are Analysts Watching Next?

Analysts are closely monitoring the behavior of large investors and the broader on-chain activity in the PEPE token. The token's price movement could be influenced by further whale activity, market sentiment, and macroeconomic factors. Some traders are watching the 365-day moving average as a key technical level for the Total3 market cap, which includes all altcoins. If PEPE continues to rise, it could signal a broader trend of capital flowing into altcoins and meme tokens as the market recovers from the previous bear phase. Investors are also paying attention to the performance of other major cryptocurrencies such as Bitcoin and Ethereum. Both have seen gains in recent weeks, with Bitcoin up 4.88% and Ethereum up 6.96% over the past seven days. A continued rise in Bitcoin could further fuel demand for altcoins and meme tokens like PEPE.