Pepecoin (PEPE) price has plunged nearly 85% from its all-time high of $0.00000448 in May 2023. More importantly, its bearish momentum is likely to continue in September.
Continuous Pepecoin security vulnerabilities occur
Pepecoin has suffered two security breaches in the past two weeks.
First, on August 24, Pepecoin’s rogue founding team members moved $16 million worth of PEPE tokens to an exchange to potentially sell them. This caused concerns throughout the community about a potential “rug pull scam,” causing the PEPE market to fall by 30%.
Then, on September 9, Pepecoin’s official X (aka Twitter) account confirmed that an anonymous entity named “lordkeklol” had hacked their recognized Telegram channel.
❌❌ $PEPE Announcement❌❌
old telegraph $PEPE Hacked and no longer under our control. The account “lordkeklol” has been compromised. Whoever gains access to the account will use it to commit scams, deceive people, and issue additional tokens. This person is lying and… pic.twitter.com/jxlYwoSP1Q
— Pepe (@pepecoineth) September 9, 2023
Since the news broke, the price of PEPE has fallen by more than 12%, indicating that a series of security breaches has eroded investor confidence in the memecoin project.
peppa whale quits
More evidence of Pepecoin investors leaving the project comes from the token’s supply distribution data.
Notably, addresses with balances between 100 million and 1 billion PEPE (the blue wave in the image below) control the maximum circulating supply of the token – accounting for approximately 96.5% of it. The supply held by this group has dropped significantly since the “rug pull” concerns emerged.
The withdrawal of whales from the project may further weaken buying sentiment in the PEPE market.
descending triangle decomposition
From a technical perspective, PEPE has entered the breakdown phase of a descending triangle pattern.
RELATED: Exploits, hacks and scams stole nearly $1 billion in 2023: report
A descending triangle in a downtrend is considered a bearish continuation pattern. The pattern disappears when price breaks below its lower trendline and falls to the height between the upper and lower trendlines of the triangle.
Due to this technical setup, PEPE price is likely to drop to $0.00000064 in September 2023, which would be a decline of approximately 12% from current price levels.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
Svlook