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The path to the next leg is never linear. If youβre feeling the pain now, history suggests it will likely intensify before it improves.
Price is the leading indicator of morale. Over the last week, weβve seen a drawdown from $23M to $7M. This is not unusual:
ETH fell 94% in 2018 before becoming the settlement layer of crypto. SOL dropped from $260 to $8 during FTXβs collapse, only to rebound 20x. LINK spent two years ranging under $1 before breaking out to $20+.
This is reflexivity in action. When price declines, demand collapses - no one wants to catch a falling knife. Bottoms are unobservable in real time by definition. Yet once price turns, attention and capital flood back in, reinforcing the move upward.
Memecoins are an amplified version of this cycle. Narrative, price, and inflows reinforce one another at extreme speeds.
A move from $2M β $23M β $7M is not a sign of structural weakness, but of a market searching for its new equilibrium. The churn transfers coins from weak hands to committed holders - the same dynamic that allowed SOL and LINK to compound higher after brutal corrections.
This is the circle of life for a memecoin. Drawdowns are not a bug; they are the mechanism by which the next leg is made possible.