Pepecoin (PEPE) Faces Major Plunge and Potential Rug Pull Risks
Summary:
Pepecoin (PEPE) has suffered a significant drop of over 80% and faces potential further losses. Allegations of a "rug pull" by developers have raised concerns about its future. Technical indicators and previous rug pull cases suggest a possible crash to zero. However, some investors are using the price decline as an opportunity to accumulate PEPE tokens. The market's ability to absorb the selling pressure from developers is being tested. A potential rebound is expected if PEPE bounces back from the current accumulation area. This article does not provide investment advice; readers should conduct their own research.
Pepecoin (PEPE), a popular memecoin, has experienced a sharp decline of over 80% since its peak, raising concerns that further losses may be imminent in the coming weeks or months. The recent allegations of a "rug pull" by rogue developers have added to the uncertainty surrounding PEPE's future, with some analysts even speculating that its value could plummet to zero by 2023. This incident is reminiscent of previous rug pull scams, such as the case of MULTI, which saw a significant drop in value following allegations of a $125 million hack. Another example is the Encryption AI token (0XENCRYPT), which crashed by 99% after a developer associated with the project committed a $2 million rug-pull fraud. Looking at the technical indicators, market analyst Nebraska Gooner has identified a potentially bearish descending triangle formation on the four-hour chart, suggesting that PEPE's price could face further decline. However, amidst the bleak outlook, some investors see the price dip as an opportunity to accumulate more PEPE tokens. Notably, the supply held by entities with a balance between 10,000 and 100,000 PEPE tokens has witnessed a significant increase since August 27. These investors believe that the market can absorb any selling pressure from the token developers. On a positive note, PEPE's price is currently trading near a recognized accumulation area, which could lead to a potential rebound. If PEPE manages to bounce back, its next upside target would be its 50-day exponential moving average (50-day EMA) at around $0.00000121, offering a 45% increase from the current price levels. It is crucial to note that this article does not provide investment advice, and readers should exercise caution and conduct their own research before making any decisions.
Published At
8/29/2023 1:08:34 PM
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