Is a 105% return not enough? After partially taking profits of $360,000, PEPE's whale still maintains a large short position.

On January 15th, on-chain monitoring data showed that the address labeled as “20 million wave band hunter” took partial profit on its PEPE short position. This whale, known for high-frequency wave trading, reduced its PEPE short holdings by 144 million tokens in a single operation, realizing a profit of $360,600. But more interestingly, it did not close the entire position, still holding a massive short position worth $3,429,900. What signals might be hidden behind this?

Key Data on Whale’s Profit-Taking

The core indicators of this profit-taking are as follows:

From this data, we can see that this address has performed well in PEPE’s short trading, but the most noteworthy aspect is its profit-taking strategy: instead of closing all positions at once for profit, it chose to take partial profits. What does this imply?

Why only take partial profit?

This address’s trading style gives us the answer. According to on-chain monitoring data, this address is characterized by:

• High-frequency trading, with an average holding time of only 20 hours
• Multi-asset portfolio, not focused on a single coin
• Since October 2025, with a principal of $20 million, it has accumulated nearly $100 million in profits
• Recent trading success rate is clearly high, demonstrating professional fund management skills

Under this style, partial profit-taking is a rational choice. It locks in gains already made while retaining the opportunity for further profits. If PEPE continues to decline, the remaining $3.4299 million position can still profit; if the price rebounds, at least $360,600 has been secured. This is a typical risk management approach.

Risk assessment of the remaining position

But there is a detail to watch: the liquidation price is $0.051. This means if PEPE’s price rebounds to $0.051, this address’s short position will face liquidation risk.

According to relevant information, PEPE’s current market performance is generally weak, with a 24-hour decline of over 9%. But in the longer term, as a meme coin ranked 37th by market cap, PEPE’s price volatility is inherently intense. Although the remaining short position of $3.4299 million currently shows a floating profit of $360,600, market sentiment reversal could quickly amplify the risk of this position.

Market Significance Interpretation

What signals does this profit-taking operation release?

Confidence indicator

This address’s willingness to retain a large short position indicates confidence that PEPE will continue to decline. Its historical track record is notable: earning $8.7 million in just the past week (based on relevant info), which suggests its judgment is worth noting. The whale’s persistent bearish stance may imply that PEPE still has room to fall in the short term.

Risk release signal

Partial profit-taking itself is also a risk release signal. Even such a skilled trader is choosing to actively reduce risk exposure. This could imply that current gains are quite substantial, and the cost-effectiveness of holding further is decreasing.

Follow-up Focus

For market participants, several questions are worth considering:

• Can PEPE hold the key support at $0.01? If it breaks below, this address’s remaining shorts could have even greater profit potential
• If the price rebounds close to the $0.051 liquidation level, will the whale choose to close positions proactively or be forced to liquidate?
• What will be this address’s next move? Its trading rhythm is usually fast (average 20 hours), so new signals may emerge quickly

Summary

The “20 million wave band hunter” in this PEPE short operation demonstrates a professional trader’s risk management philosophy: taking partial profits when gains are substantial, securing some gains while retaining the opportunity for more. The $360,600 profit has been realized, but the remaining $3.4299 million short position still exists. This address’s historical performance suggests it is worth watching, as its subsequent position changes could serve as important market signals. For PEPE’s future trend, the key is whether this whale will continue to add to its shorts or finally close all positions—this often reflects the true short-term outlook of professional funds.