{"id":21681,"date":"2023-08-29T13:46:11","date_gmt":"2023-08-29T13:46:11","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/pepe-price-to-zero-pepecoin-rug-pull-allegations-put-memecoin-at-risk\/"},"modified":"2023-08-29T13:46:14","modified_gmt":"2023-08-29T13:46:14","slug":"pepe-price-to-zero-pepecoin-rug-pull-allegations-put-memecoin-at-risk","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/pepe-price-to-zero-pepecoin-rug-pull-allegations-put-memecoin-at-risk\/","title":{"rendered":"PEPE price to zero? Pepecoin rug-pull allegations put memecoin at risk"},"content":{"rendered":"
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Pepecoin (PEPE), once an extremely profitable memecoin, has plunged by more than 80% four months after its record high. Now, technicals suggest that the memcoin could be at risk of even bigger losses in the coming weeks or months.<\/p>\n

Pepecoin faces rug pull allegations<\/h2>\n

On Aug. 24, several rogue Pepecoin developers changed the number of signatures required to move tokens from their multi-sig wallet from five-out-of-eight to two-out-of-eight. Then, they sent $16 million worth of PEPE to crypto exchanges, suggesting that they wanted to sell.<\/p>\n

A segment of market analysts viewed these moves as a hint of an impending \u201crug pull,\u201d raising fears that the PEPE price may crash to zero in 2023.\u00a0<\/p>\n

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Another meme coin, another rug pull.
Honestly what do you expect when you put your money on these scams?$pepe<\/a><\/p>\n

\u2014 Wolf (@IamCryptoWolf) August 26, 2023<\/a><\/p><\/blockquote>\n

Previous rug pulls, such as MULTI, the native token of Multichain\u2019s cross-chain bridging protocol, has dropped nearly 98% from its peak. The decline has appeared partially due to allegations that Multichain\u2019s $125-million hack in July 2023 was part of a broader rug-pull scam.<\/p>\n

Similarly, in July 2023, a crypto developer associated with the Encryption AI project committed a $2-million rug-pull fraud. As a result,\u00a0the Encryption AI token, 0XENCRYPT, crashed 99% to an all-time low of $0.02.<\/p>\n

PEPE\u2019s price paints deadly descending triangle<\/h2>\n

Market analyst Nebraskangooner suggests that PEPE\u2019s price could soon plunge to nearly zero due to a descending triangle formation on the four-hour chart.<\/p>\n

A descending triangle in finance is a bearish continuation pattern characterized by the simultaneous formation of a falling trendline resistance and horizontal trendline support. It resolves after the price decisively breaks below the support and falls by as much as the triangle\u2019s maximum height.<\/p>\n

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$PEPE<\/a><\/p>\n

Descending triangle breaking down.<\/p>\n

Send this ponzi to zero https:\/\/t.co\/ZiCp23FJTs pic.twitter.com\/CJKaL2Agxx<\/a><\/p>\n

\u2014 Nebraskangooner (@Nebraskangooner) August 28, 2023<\/a><\/p><\/blockquote>\n

This puts the bearish target for PEPE\u2019s descending triangle at nearly zero.<\/p>\n

PEPE hopefuls buy the dip<\/h2>\n

On a brighter note, some PEPE investors have used the token\u2019s price decline as an opportunity to buy the dip.\u00a0Notably, the supply held by entities with a balance between 10,000 and 100,000 PEPE tokens has jumped substantially since Aug. 27.<\/p>\n

PEPE supply distribution. Source: Santiment<\/em><\/figcaption><\/figure>\n

This accumulation is underway as Pepecoin hopefuls assert that the market can absorb any further selling pressure from the token devs.\u00a0<\/p>\n

\u201cThe @pepecoineth devs used to hold 6% of the PEPE and sold 16T tokens equaling 4% of the supply,\u201d\u00a0noted<\/a> Kenobi, a PEPE investor, adding: <\/p>\n

\u201cNo other wallet (besides exchanges) holds more than 0.9% of the supply, except the Pepe\u00a0dev wallet, which now holds 2%. This is long-term bullish for PEPE. SELL THE REMAINING 2%!!!\u201d<\/p><\/blockquote>\n

Technically, PEPE has been trading near a recognized accumulation area around $0.00000085 that witnessed a 120% price rally during the June\u2013July 2023 session. Thus, chances of a market rebound at this level are high, given PEPE\u2019s oversold relative strength index (RSI).<\/p>\n

PEPE\/USDT daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

If PEPE\u2019s price bounces here, then the next upside target comes to be its 50-day exponential moving average (50-day EMA; the red wave) near $0.00000121 in 2023, up around 45% from the current price levels.<\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n