Pepecoin (PEPE) has experienced a dramatic 85% drop in price since reaching its record high of $0.00000448 in May 2023. The bearish momentum is expected to continue into September, adding to the concerns surrounding the cryptocurrency.
In the past two weeks, Pepecoin has faced two significant security breaches that have shaken investor confidence. The first breach occurred on August 24 when members of Pepecoin’s founding team transferred $16 million worth of PEPE tokens to exchanges, raising concerns about a potential “rug pull scam.” This news led to a 30% decline in the PEPE market.
The second security breach took place on September 9 when Pepecoin’s official Telegram channel was hacked by an anonymous entity known as “lordkeklol.” This compromised account was then used to push scams and deceive people, further damaging the reputation of the project.
As a result of these back-to-back security breaches, the price of PEPE has dropped by over 12%, indicating a loss of confidence among investors. This loss of confidence is further reflected in the supply distribution data, which shows that addresses holding between 100 million and 1 billion PEPE tokens, controlling about 96.5% of the token’s circulating supply, have been rapidly decreasing since the rug pull concerns emerged.
The departure of these “whales” from the project may continue to erode buying sentiment in the PEPE market. From a technical standpoint, PEPE appears to be in the breakdown stage of a descending triangle pattern. This pattern is typically considered a bearish continuation pattern, and if the price breaks below its lower trendline, it could fall as much as the height between the triangle’s upper and lower trendline.
Based on this technical setup, there is a risk that PEPE’s price could potentially drop to $0.00000064 in September 2023, representing a further decline of about 12% from its current levels.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading carry inherent risks, and individuals should conduct their own research before making any decisions.
+templatе subscription_form markets_outlook
Source link