Tron founder Justin Sun rescued American singer, songwriter, and record producer Ty Dolla Sign from losing his Sundog (SUNDOG) meme coin bag.

SUNDOG is one of the Tron network’s leading meme coins, boasting a market capitalization above $265 million. It is fueled by large investments and vocal support from the controversial Tron executive.

Justin Sun Bails Out Ty Dolla Sign’s $409,000 SUNDOG Mishap

The American celebrity Ty Dolla Sign mistakenly sent 1.66 million SUNDOG tokens, valued at $409,000, to a contract address instead of his TRX account. To assist him, Justin Sun, founder of Tron, stepped in by sending 3,194,887 TRX tokens (worth $500,000) from his HTX4 wallet to Ty Dolla Sign, stating that this would help him “get back in the game.”

Ty Dolla Sign then used the TRX tokens to re-invest in the SUNDOG meme coin. According to data on Tronscan, the artist swapped the 3,194,887 TRX tokens for 1,635 SUNDOG coins on SunSwap V3, effectively channeling the funds back into the meme coin market.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Lookonchain data supports the report on Ty Dolla Sign’s token recovery. However, the incident sparked conversations around token recovery after such massive losses. 

“You are telling me that if I’m dumb enough to burn my $400k I’ll get $500k back? Where do I sign?” Dead Cat Bounce, a pseudonymous user on X commented.

It remains unclear whether Ty Dolla Sign’s celebrity profile played a role in attracting Justin Sun’s attention. Nevertheless, it is worth noting that the behavior and outcome when one sends tokens to a contract address varies. Specifically, it depends on the contract’s design, with one of five outcomes possible:

• Rejection. Some contracts’ designs are such that they reject incoming token transfers. In this case, the tokens sent to the contract address are not accepted, and the transaction may fail.
• Fallback Function Execution. If the contract has a fallback function or a receive function defined, it may execute certain code logic when one sends tokens to the address. This function could handle the incoming tokens in a specific way defined by the contract creator.
• Token lockup. The contract’s programming may be such that it locks up or stores the tokens sent to it for specific purposes outlined in its code. These tokens could be held in escrow or used for certain functionalities within the contract.
• Token Swap/Exchange. Some contracts allow for token swaps or exchanges. One can then exchange the tokens sent for other tokens or assets, depending on the contract’s rules.
• Loss of Tokens. In some cases, sending tokens to a contract address may result in the loss of those tokens if the contract does not handle incoming tokens properly or if the contract code has vulnerabilities.

Ty Dolla Sign’s incident highlights the need for caution when performing crypto transactions. It also stresses the importance of reviewing a contract’s code and functionality before sending tokens to a contract address, to avoid potential losses.

Read more: 7 Best Tron Wallets for Storing TRX

Against this backdrop, however, SUNDOG’s price is up by 5.45%. It has effectively outperformed leading meme coins like DOGE, SHIB, and PEPE, which are down between 6% and 10%. As of this writing, the Tron-based meme coin is trading for $0.2588.

PEPE price is showing signs of weakening momentum. Key technical indicators suggest the recent uptrend is losing steam. As a result, the coin has fallen almost 10% in the last 24 hours.

Additionally, short-term price indicators, such as the EMA lines, remain neutral, signaling that PEPE may test important support levels in the near future. While the possibility of a downward move exists, a resurgence in bullish momentum could push PEPE toward retesting key resistance levels.

PEPE ADX Shows The Current Uptrend Is Fading Away

PEPE’s ADX has dropped to 17.89, a sharp decline from its peak of 58.52 on September 30, when PEPE was trading at $0.00001147. The ADX (Average Directional Index) is a key technical indicator used to measure the strength of a trend. That measure is regardless of whether it’s bullish or bearish.

When the ADX is above 25, it indicates a strong market trend. That suggests that momentum is likely driving the price in one clear direction. On the other hand, when the ADX falls below 20, it signals a weak or nonexistent trend.

That points to consolidation or a phase of indecision where no clear price movement is dominant. Currently, with PEPE’s ADX at 17.89, this suggests that the market is in a consolidation phase, lacking strong directional momentum.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

Such a low ADX value indicates that the price is likely ranging within a narrow band, neither gaining nor losing much ground. This aligns with the idea that PEPE is in a period of reduced volatility, even as one of the biggest meme coins in the market.

The sharp drop in ADX also confirms that the strong trend observed in late September has faded, leaving PEPE without a clear directional force. That makes it more susceptible to sideways trading or minor fluctuations until a new trend emerges.

PEPE MVRV Ratio Is Now Negative

PEPE’s 1D MVRV Ratio is currently at -3.12%, indicating that, on average, recent investors are holding PEPE at a loss relative to its current price. The 1D MVRV (Market Value to Realized Value) Ratio is a key metric used to gauge whether a token is overvalued or undervalued by comparing the market value of an asset with its realized value.

When the MVRV ratio is positive, it suggests that holders are generally in profit, while a negative ratio implies that they are in a loss position. Extremely positive values signal that a sell-off could be imminent, as investors may start taking profits.

On the flip side, a negative MVRV ratio, like the current -3.12%, suggests that the market is undervalued. That could present a buying opportunity as sellers have largely exhausted themselves. The drop from 4.17% to -3.12% in just one day is a sharp reversal. That indicates that many investors have moved from being in profit to holding losses in a very short period.

This sudden shift suggests a rapid sell-off or price drop, likely driven by market volatility or external factors impacting PEPE’s price. This could trigger further cautious behavior in the market as traders wait for the MVRV to stabilize or reverse upward again.

PEPE Price Prediction: A Potential Downtrend Ahead?

PEPE’s EMA lines are currently neutral without a clear indication of an uptrend or downtrend, reflecting the market’s indecision. EMA (Exponential Moving Average) lines are widely used in technical analysis to smooth out price data and identify trends by giving more weight to recent price movements.

Short-term EMA lines react quickly to price changes, while long-term EMA lines offer a broader view of the trend. In PEPE’s case, the short-term EMAs are still above the long-term ones. This is generally considered a bullish signal, but they are starting to slope downward.

Read more: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users

This downward tilt suggests that the bullish momentum is weakening, and a potential shift could be on the horizon. If the current price action continues in this neutral to slightly bearish direction, PEPE might test the support level at $0.00000835 in the coming days. Should this support fail to hold, the price could drop further, with the next strong support at $0.00000776.

However, if bullish momentum picks up again, PEPE price could challenge the resistance at $0.0000119. For now, the market remains in a state of uncertainty, and traders are likely waiting for a clearer signal to determine the next move.

Tomorrow, October 9, Dogs (DOGS) and Notcoin (NOT) will jointly burn $4 million worth of tokens that have remained unclaimed since both projects distributed tokens in Telegram airdrops.

This event has sparked speculation about the potential impact on their respective prices. As the community awaits this moment, BeInCrypto examines how the dynamics of demand and supply could affect NOT and DOGS.

Both Notcoin and Dogs have decided to burn their tokens after receiving the green light from the community. To encourage participation, the official channels of these Telegram-native projects announced that the event will be streamed live on X (formerly Twitter) at 1 p.m. UTC.

For context, projects engage in token burning by permanently removing tokens from circulation to enhance scarcity and potentially increase the long-term value of their cryptocurrencies. In total, DOGS will burn 4.8 billion tokens, while Notcoin will contribute the remainder, bringing the total burn to approximately $4 million

However, it is important to mention that Dogs and Notcoin did not launch around the same period. While Notcoin distributed over 80 billion tokens in Telegram airdrop in June, Dogs gave out about 400 billion tokens to eligible users. 

Currently, DOGS changes hand at $0.00072, 55% down from its launch price. Notcoin’s price is down 46% from its all-time high. Despite this, the Weighted Sentiment around the projects has jumped, suggesting that the broader community is bullish about the event.  

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Meanwhile, a DOGS representative spoke to BeInCrypto regarding the recent decision surrounding their event. The representative clarified that the decision-making process was transparent, with every token holder given the opportunity to participate.

However, they noted that there was a collective decision not to burn all unclaimed airdrops, indicating that this choice was made with input from the community and based on a majority consensus.

“Instead of opting for a short-term gain by burning all (or at least a higher proportion of) unclaimed tokens — which would have likely boosted immediate value — our community voted to allocate a significant portion of these tokens to charitable causes,” the spokesperson told BeInCrypto.

DOGS and NOT Prices Target Breakout

A look at the 4-hour chart shows that DOGS’ price is attempting to rise above the descending triangle, characterized by a flatter horizontal trendline and a descending one. When the price falls below the horizontal trendline, the token in question could undergo another correction.

On the other hand, if the price breaks above the descending trendline, a rally occurs. As seen below, DOGS’s price is far above the horizontal part and could rise past the triangle. The Relative Strength Index (RSI), which measures momentum, also backs this prediction as it is above the zero signal line.

Should this remain the same after the token burn, DOGS could jump toward $0.00088 and likely hit $0.0010 afterward. The prediction might, however, be invalidated if the token drops back to the horizontal line at $0.00068.

Meanwhile, Notcoin’s market structure on the daily chart is similar to DOGS’ technical setup. From the chart below, NOT’s price is looking to break the $0.0085 resistance. If successful, Notcoin’s price could jump toward $0.11 and eventually $0.014. However, if the token fails to rise above the overhead resistance, a decline to $0.0072 could be possible. 

Read more: Top 9 Telegram Channels for Crypto Signals in October 2024

In the meantime, the Dogs team noted that it would donate the remaining 6 billion unclaimed Telegram airdrop tokens to charitable causes related to children and animals.

“All the donations made have always been and will always be clearly presented to the community ensuring accountability. The most active community members will in the future be able to take part in real-life charity initiatives,” the project’s representative added.