Pepecoin (PEPE), once a promising altcoin, is facing a significant decline as its price has fallen by nearly 85 percent since its peak of $0.00000448 in May 2023. According to analyst Yashu Gola, the downward momentum is likely to continue until the end of September, causing concern among investors and enthusiasts alike. Here are the details…
Investor confidence in the altcoin project was shaken
Pepecoin has suffered not one but two troubling security breaches in the past two weeks. The first incident occurred on August 24, when rogue members of Pepecoin’s founding team transferred $16 million worth of PEPE tokens to exchanges, potentially signaling their intention to sell. This move triggered fears of a “rug pull scam” and led to a rapid 30% decline in the PEPE market.
cryptokoin.com As we also reported, just a few weeks later, on September 9, the official Pepecoin Twitter account confirmed that an anonymous entity known as “lordkeklol” had hacked the project’s accredited Telegram channel. This breach sent shockwaves through the community, with PEPE’s price falling over 12%, further eroding trust in the meme coin.
Investors are running away from PEPE
Evidence of investor flight from Pepecoin is clearly seen in the distribution of the token supply. Addresses holding between 100 million and 1 billion PEPE tokens, representing approximately 96.5% of the maximum circulating supply, have witnessed a significant reduction in their holdings since concerns about the rug being pulled emerged. The departure of these influential whales could exacerbate downward pressure on PEPE’s price.
For example, surprisingly, a cryptocurrency whale who bought PEPE tokens on Huobi in April 2023 sold them all, making a significant profit. According to Etherscan data, the whale with address 0x9da sold 452.911 billion PEPE tokens for 194.31 ETH on September 10, 2023, at a rate of $0.0000006961 per token. This transaction resulted in a profit of approximately $315,000. Whale first purchased PEPE tokens from Huobi on April 27, 2023, at an average price of $0.0000002198 per token and invested approximately $99,550. With this sale, the whale’s assets were reduced to zero.
What do technical developments indicate?
From a technical perspective, PEPE appears to be caught in a descending triangle formation within a broader downtrend. This pattern is typically seen as a bearish continuation signal. The resolution of this pattern typically occurs when the price falls below the lower trend line and can result in a decline equivalent to the height between the upper and lower trend lines of the triangle. Given this technical setup, the price of PEPE could potentially drop to $0.00000064 in September 2023, reflecting a 12% decline from current levels.