Pepe [PEPE] has lost 12% of its market cap in the past 24 hours as memecoins plunged by more than 5%. However, PEPE’s weekly gains remain in the green, up about 27%, hinting this drop could be just a short correction.
Among the top 100 cryptos by market cap, PEPE was the worst-performing memecoin. Other memecoins that recorded double-digit losses in a single day were BONK, USELESS, and CASHCAT.
PEPE’s loss was driven by selling pressure and the coin’s technical phase.
PEPE rewards on StonkFun induce selling pressure
PEPE coins were being sold for profits after a 10-day surge. These tokens were emanating from the StonkFun [STONK] reward system, where holders of FEELSGOOD had received $2.84 million in PEPE tokens.
As a result, its Open Interest (OI) fell from $400 million to $334 million. Moreover, the trading volume declined from $1.32 billion to about $727 million, reinforcing the decrease in buying activity.
This launchpad’s system has also rewarded other tokens like Bitcoin [BTC], Solana [SOL], and Hyperliquid [HYPE], among others.
Additionally, PEPE was in a pullback phase, with the price retesting its previous higher high (HH) around $0.0000040. This uptrend was initiated by a breakout from an inverted head-and-shoulders pattern.
The pullback phase is evident as the MACD bars are slowly fading in color. This indicates a decline in bullish strength. If that continues, the memecoin could plunge to $0.0000030.
However, long liquidations, which had risen sharply, have since cooled off, implying the correction might be nearing an end. If the level holds, its next target is at $0.0000050 or higher.
Inside PEPE vs. PENGU price action fractal!
Meanwhile, Ali Martinez is anticipating an explosive rally for Pudgy Penguins [PENGU] as its structure is starting to ape that of PEPE.
Before its 2024 rally, PEPE had an early expansion, correction, accumulation, and eventual breakout. Basically, the memecoin’s price rallied from $0.0000009 to $0.000009, which is more than a 10x increase.
Currently, PENGU is entering a part of the cycle where the largest expansion happened, making it difficult to ignore the fractal. If the fractal plays out, PENGU could surge from $0.0087 to $0.80, equivalent to almost a 100x pump.
However, this fractal hinges on the whole crypto market staying bullish at least extending into the next quarter.
Final Summary
- PEPE plunged by more than 12% in the past 24 hours, as users sold $2.84 million in PEPE rewards on StonkFun.
- PENGU appears to be entering the part of the cycle where PEPE began its explosive rally.
