- PEPE price dropped 12% in 24 hours as $2.84 million in StonkFun rewards added selling pressure.
- Despite the decline, PEPE remains up 27% weekly, with $0.0000040 acting as a key level for its next move.
PEPE price fell 12% in 24 hours as holders sold millions of dollars in rewards distributed through StonkFun. The decline comes after a strong 10-day rally that pushed PEPE’s weekly gains to about 27%.
$2.84M in PEPE Rewards Adds Selling Pressure
The latest drop was linked to selling from recipients of StonkFun’s reward system. Holders of FEELSGOOD received about $2.84 million worth of PEPE, with some of those tokens subsequently sold for profit.
The selling was reflected across PEPE’s derivatives market. Open interest fell from around $400 million to $334 million, while trading volume dropped from $1.32 billion to roughly $727 million, according to CoinGlass data.
PEPE was also the weakest-performing memecoin among the top 100 cryptocurrencies by market capitalization over the past day. BONK, USELESS and CASHCAT also posted double-digit daily losses.
Despite the sharp decline, PEPE remains up about 27% over the past week, suggesting the latest move could still be part of a broader pullback following its recent rally.
PEPE Price Retests $0.0000040 Support
PEPE price is currently in a pullback after breaking out of an inverted head-and-shoulders pattern. The decline has brought the price back toward the previous higher high near $0.0000040.
Technical signals also show that bullish strength is weakening. The MACD bars are gradually fading, which could leave PEPE vulnerable to another move lower if selling continues.
A break below the $0.0000040 area could expose PEPE to a move toward $0.0000030. On the other hand, if the level holds and buying pressure returns, the next upside target sits around $0.0000050.
Long liquidations have also cooled after rising sharply during the decline. That could indicate that the forced selling phase is losing strength and that the current correction may be approaching an end.
PEPE Rally Pattern Draws Attention to PENGU
PEPE’s previous price cycle is also being compared with Pudgy Penguins (PENGU). Analyst Ali Martinez has pointed to similarities between the current PENGU structure and PEPE’s setup before its major 2024 rally.
PEPE previously moved through an expansion, correction and accumulation phase before breaking higher. During that rally, PEPE climbed from around $0.0000009 to $0.000009, gaining more than tenfold.
PENGU is now approaching a stage of its cycle that resembles the expansion phase seen in PEPE. Martinez has suggested that the pattern could eventually take PENGU from around $0.0087 toward $0.80 if the fractal plays out.
That comparison remains dependent on broader crypto market conditions. A sustained bullish environment would be needed for the projected pattern to develop.
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