The cryptocurrency Pepe [PEPE] has fallen by 12% in capitalization over the past 24 hours due to selling pressure caused by the reward system. During this time, other memecoins also showed significant losses – on average more than 5%. Despite this, over the week, PEPE still shows a gain of about 27%, which may indicate that such a drop is just a temporary correction. PEPE became the worst memecoin among the top 100 cryptocurrencies by capitalization, and among other memecoins that lost more than 10% in one day were BONK, USELESS, and CASHCAT. The main reason for the drop was the sale of tokens that occurred after a 10-day rise, where PEPE holders were earning on their investments. These tokens came from the StonkFun [STONK] reward system, which paid FEELSGOOD holders a total of $2.84 million in PEPE tokens.
According to CoinGlass data, as a result, this market pressure affected the open interest (OI), which decreased from $400 million to $334 million, and the trading volume fell from $1.32 billion to approximately $727 million. This reward system also affects other tokens, such as Bitcoin [BTC], Solana [SOL], and Hyperliquid [HYPE]. Currently, PEPE is in a correction phase, retesting its previous high at $0.0000040. This growth began after breaking out of the "inverted head and shoulders" pattern. The current correction phase is also confirmed by the weakening bullish strength, as seen by the change in color of the MACD bars. If this trend continues, the memecoin may fall to $0.0000030.
Nevertheless, long-term liquidations, which had previously surged sharply, have now receded, indicating that the correction may be nearing completion. If the price holds at the current level, the next target is $0.0000050 or higher. Meanwhile, Ali Martinez predicts explosive growth for Pudgy Penguins [PENGU], as its structure begins to resemble PEPE's growth. Before PEPE saw its growth in 2024, it went through stages of expansion, correction, accumulation, and subsequent breakout. Specifically, PEPE's price rose from $0.0000009 to $0.000009, which is more than a 10-fold increase. Currently, PENGU is entering the stage where the largest expansion occurred, making this pattern hard to ignore. If it works, PENGU could rise from $0.0087 to $0.80, which is nearly a 100-fold increase. However, this scenario depends on whether the entire cryptocurrency market remains bullish at least until the next quarter.
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