Pepecoin (PEPE) has experienced a significant crash in price, dropping nearly 85% from its record high of $0.00000448 in May 2023. Moreover, the bearish momentum for PEPE is expected to continue throughout September. This decline in price can be attributed to a series of security breaches and the exodus of Pepe whales from the project.
In the past two weeks, Pepecoin has faced two major security breaches that have shaken investor confidence. The first breach occurred on August 24, when rogue founding team members transferred $16 million worth of PEPE tokens to exchanges, potentially for selling purposes. This raised concerns of a “rug pull scam” within the community and resulted in a 30% decline in the PEPE market.
The second security breach took place on September 9, when Pepecoin’s official Twitter handle announced that an anonymous entity called “lordkeklol” had hacked their accredited Telegram channel. This breach further eroded investor confidence, leading to a 12% drop in PEPE price since the announcement.
The departure of Pepe whales from the project is another indication of dwindling investor support. Data on token supply distribution reveals that addresses holding between 100 million and 1 billion PEPE tokens, which control around 96.5% of the token’s circulating supply, have significantly decreased their holdings. This reduction in supply held by major investors could further dampen buying sentiment in the PEPE market.
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From a technical standpoint, PEPE appears to be in the breakdown stage of a descending triangle pattern. A descending triangle in a downtrend is considered a bearish continuation pattern. The pattern is confirmed when the price breaks below the lower trendline and drops by a distance equivalent to the height between the triangle’s upper and lower trendlines. Based on this technical setup, PEPE price is at risk of falling to $0.00000064 in September 2023, representing a 12% decline from current levels.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.
In conclusion, Pepecoin’s price has experienced a significant decline and is expected to continue its bearish momentum in September. The series of security breaches, combined with the departure of major investors, has eroded confidence in the project. Additionally, from a technical perspective, PEPE’s chart indicates a potential further decline in price. Investors and traders should exercise caution and conduct thorough research before making any decisions regarding PEPE.
