Pepecoin (PEPE), once a rising star in the cryptocurrency world, has experienced a precipitous decline in value. Since reaching its record high of $0.00000448 in May 2023, PEPE has plummeted by nearly 85%. Unfortunately, the downward trend shows no signs of abating in the coming month of September.
Over the past two weeks, Pepecoin has been hit by not one, but two alarming security breaches. The first occurred on August 24 when rogue members of the Pepecoin founding team transferred a staggering $16 million worth of PEPE tokens to exchanges for potential sale. This “rug pull scam” sent shockwaves through the Pepecoin community, resulting in a sharp 30% decline in the market.
As if that weren’t enough, another blow came on September 9, when Pepecoin’s official X (aka Twitter) handle confirmed that an anonymous entity known as “lordkeklol” had hacked their accredited Telegram channel. This unfortunate incident further eroded investor confidence in the already beleaguered memecoin project, causing the PEPE price to drop an additional 12%.
The impact of these security breaches is evident in the token’s supply distribution data. Notably, addresses holding between 100 million and 1 billion PEPE tokens (represented by the blue wave in the chart below) control a significant portion of the token’s circulating supply, accounting for approximately 96.5% of it. However, since the emergence of “rug pull” concerns, the supply held by this cohort has declined significantly. This mass departure of whale investors may further erode buying sentiment in the PEPE market.
A Technical Breakdown
From a technical standpoint, Pepecoin appears to be in the breakdown stage of a descending triangle pattern. This pattern, in the context of a downtrend, is typically regarded as a bearish continuation signal. The pattern is expected to resolve when the price breaks below its lower trendline, resulting in a potential drop equal to the height between the triangle’s upper and lower trendlines.
Given this technical setup, PEPE is poised to risk falling to a price of $0.00000064 in September 2023, representing a further 12% decrease from its current levels. This grim outlook reinforces the notion that the decline of Pepecoin is far from over.
The recent string of security breaches and the subsequent decline in investor confidence have dealt a severe blow to Pepecoin. With the value of PEPE tokens plummeting by almost 85% from its all-time high, the future looks uncertain for this once-promising cryptocurrency. As the technical breakdown continues and the risk of a further 12% decline looms, Pepecoin must find a way to restore trust and revive its market value if it hopes to regain its former glory.