Whales Accumulate Dogecoin, PEPE, and USELESS Amid Meme Coin Slump: Strategic Positioning or Speculative Gamble?
Introduction: Contrarian Accumulation Defies Market Sentiment
While the broader meme coin sector has registered a 6.8% decline over the past week and a further 2% drop in the last 24 hours, ranking it among the worst-performing cryptocurrency categories, a fascinating counter-trend is emerging. Large-scale investors, commonly referred to as "whales," are not retreating but are instead strategically accumulating select assets. Data reveals significant whale accumulation in three specific tokens: Dogecoin (DOGE), PEPE, and USELESS. This activity occurs against a backdrop where nearly every major meme coin has corrected sharply, with some falling over 20%. The concentrated buying in these three projects suggests a growing conviction among major holders and potentially early positioning for a anticipated market reversal, highlighting a stark divergence between general market sentiment and the actions of its most influential participants.
Dogecoin (DOGE): The Blue-Chip Meme Attracts Monumental Investment
As the original meme coin, Dogecoin continues to command significant attention and capital, even during market downturns. Throughout October, DOGE price action has been characterized by indecision, trading relatively flat around $0.19. However, on-chain data reveals substantial accumulation happening beneath the surface.
Two distinct whale cohorts have significantly increased their holdings since mid-October. The largest wallets, those holding over 1 billion DOGE, saw their collective balance grow from 69.8 billion to 71.39 billion tokens. This represents an addition of 1.59 billion DOGE, which was worth approximately $302 million at prevailing prices. A second tier of whales, holding between 10 million and 100 million DOGE, also expanded their holdings, rising from 24.24 billion to 24.45 billion tokens—an addition of about 210 million DOGE worth roughly $40 million. This collective buying spree of nearly 1.8 billion DOGE occurred even as the DOGE price registered a day-on-day decline of over 4%.
From a technical perspective, this accumulation aligns with Dogecoin's chart pattern. On the daily timeframe, DOGE has been moving inside a narrowing falling wedge, a technical structure that analysts often interpret as a precursor to an upside breakout. A successful breakout above the pattern's upper boundary, situated near $0.24, could potentially unlock further price targets. Conversely, technical analysis indicates that if DOGE loses the $0.19 support level, a pullback toward $0.18 remains possible. A drop below $0.17 would expose the price to deeper weakness near $0.14.
PEPE: Whales Bet on a Rebound at Critical Support
PEPE has quietly emerged as another focal point for whale activity in the fourth week of October. Despite its position as the 51st-ranked cryptocurrency and a challenging month that saw its price drop 31% over the past 30 days, large holders are using the period of relative price stability to accumulate.
Data shows that PEPE whales increased their holdings from 155.62 trillion to 155.84 trillion tokens in a single day, representing an addition of 0.22 trillion PEPE. At the current price of $0.0000068, this accumulation was worth around $1.5 million. This slow but consistent buying near a key support level suggests that whales are positioning for a potential rebound rather than bracing for an extended decline.
The technical setup for PEPE offers context for this accumulation. On the 12-hour chart, PEPE reclaimed the $0.0000068 resistance level. Analysts note that if the price holds above this level, it could pave the way for a move toward higher targets. Furthermore, between October 11 and 17, the price made lower lows while the Relative Strength Index (RSI) made higher lows—a formation known as a bullish divergence that often signals a potential near-term trend reversal. The key level to watch is $0.0000063; a break below this support could invalidate the short-term bullish setup and lead to a decline toward $0.0000050.
USELESS: Defying the Trend with Notable Strength and Whale Backing
In a sector dominated by red numbers, USELESS has demonstrated remarkable resilience, making it a standout performer and a prime target for whale accumulation. While most major meme coins corrected over the past week, USELESS gained 4% in the past 24 hours and is up nearly 82% over the last 30 days.
This price strength is corroborated by significant on-chain activity. In a single day, whale holdings increased by 1.15% to a total of 247.72 million USELESS tokens—an addition of roughly 2.81 million tokens worth about $843,000 at a price of $0.30. More notably, the top 100 addresses, often categorized as mega whales, expanded their collective balance by 7.9% to 602.42 million USELESS. This represents an addition of approximately 44 million tokens, valued at nearly $13.2 million.
The technical chart pattern for USELESS may explain this heightened interest from large holders. The daily chart shows the token trading inside what analysts describe as a continuation "flag-like" pattern. A decisive close above the $0.33 resistance level could trigger a breakout from this pattern.
Comparative Analysis: Scale, Conviction, and Market Role
The whale activity across these three tokens reveals different strategies and scales of conviction.
- Dogecoin (DOGE): The accumulation here is monumental in sheer dollar value, with hundreds of millions of dollars worth of DOGE being purchased. This reflects its status as the established blue-chip asset within the meme coin space, where whales make large-scale bets on broad market sentiment.
- PEPE: The accumulation is more tactical and value-oriented. Whales are adding to positions at what they may perceive as a local bottom, betting on a percentage rebound from depressed levels rather than making an outsized directional bet on the entire sector.
- USELESS: This represents a momentum-driven accumulation. Whales are buying into one of the few meme coins showing strong upward momentum, backing a project that is already demonstrating relative strength against a weak backdrop.
Each token plays a different role: DOGE as the sector benchmark, PEPE as a mid-cap revival play, and USELESS as a high-momentum outlier.
Strategic Conclusion: Watching for Confirmation
The coordinated whale accumulation in Dogecoin, PEPE, and USELESS amid a sector-wide slump is a significant development that crypto investors should monitor closely. It indicates that sophisticated market participants see potential value or momentum opportunities that contradict the prevailing negative sentiment.
For readers tracking these developments, the key takeaways are to watch for technical confirmations of the whale activity. For Dogecoin, a breakout above $0.24 would validate the massive accumulation. For PEPE, holding the $0.0000063 support is critical for the rebound thesis. For USELESS, a clean break above $0.33 could signal the next leg up.
While whale movements are not a guarantee of future performance, they provide powerful insight into where smart money is flowing during periods of market fear. The divergence between weak sector-wide performance and strong accumulation in these specific assets suggests that the meme coin narrative may be more nuanced than headline numbers indicate, setting the stage for a potential sector rotation driven by these early movers.
Disclaimer: In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.