Pepecoin (PEPE) Faces Back-to-Back Security Breaches and Investor Exodus, Signals Bearish Trend
Summary:
Pepecoin (PEPE) has suffered from two security breaches, causing a significant decline in its price and eroding investor confidence. The project's largest token holders are reportedly exiting, leading to further concerns. The technical analysis also suggests a bearish trend, with PEPE's price potentially dropping in September. *This article does not provide investment advice*
Pepecoin (PEPE) has experienced a significant drop of nearly 85% from its all-time high of $0.00000448 in May 2023. It seems that the bearish momentum will persist throughout September.
Unfortunately, Pepecoin has encountered two distressing security breaches in the past fortnight. Firstly, on August 24, rogue members of Pepecoin's founding team transferred $16 million worth of PEPE tokens to exchanges, causing concerns of a potential "rug pull scam" and leading to a 30% decline in the PEPE market. To compound the issue, on September 9, the official Pepecoin Telegram channel was hacked by an anonymous entity known as "lordkeklol". This incident has further exacerbated worries within the community.
The aftermath of these security breaches is evident in the market, as the price of PEPE has plummeted by over 12% since the news broke. Investors' confidence in the memecoin project appears to be dwindling.
Additional evidence of investor exodus from Pepecoin is reflected in the token's supply distribution data. The largest portion of the token's circulating supply, approximately 96.5%, is held by addresses containing 100 million to 1 billion PEPE tokens. However, the supply controlled by this group has significantly decreased since concerns arose about the "rug pull" incident.
The departure of these influential investors, sometimes referred to as "whales," may further impact buying sentiment in the PEPE market.
From a technical perspective, PEPE seems to be in the breakdown stage of a descending triangle pattern. This pattern is typically considered a bearish continuation signal. The resolution occurs when the price breaks below the lower trendline and falls by a distance equivalent to the height between the triangle's upper and lower trendlines.
Consequently, based on this technical setup, there is a possibility that PEPE's price could decline to $0.00000064 by September 2023, representing a 12% drop from its current levels.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and make informed decisions as all investments involve risks.
Published At
9/10/2023 8:30:22 AM
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