The price of Pepecoin (PEPE) has experienced a significant downfall, plunging nearly 85% from its previous record high of $0.00000448 in May 2023. Unfortunately for investors, this bearish momentum is likely to persist throughout the month of September. The cryptocurrency has recently encountered two troubling security breaches, leading to a diminished level of confidence among its stakeholders.
In the past two weeks, Pepecoin has been at the center of serious security concerns. The first incident occurred on August 24th when rogue members of the blockchain project’s founding team transferred $16 million worth of PEPE tokens to various exchanges, potentially intending to sell them. This move immediately raised alarm bells in the community, with many fearing a “rug pull scam” was underway. Consequently, the PEPE market experienced a sharp 30% decline following the incident, amplifying anxieties among investors.
The second security breach took place on September 9th when the official Pepecoin X (Twitter) account announced that their accredited Telegram channel had become the target of an anonymous hacker known as “lordkeklol.” This incident marked another blow to the already shaken investor confidence. As a result of these back-to-back security breaches, the value of PEPE has dropped by over 12%, signaling a significant erosion of trust in the memecoin project.
Further evidence of dwindling confidence in Pepecoin emerges from the distribution of the token’s supply. Addresses holding between 100 million and 1 billion PEPE tokens, represented as the blue wave in the supply distribution chart, currently control approximately 96.5% of the circulating supply. However, since the “rug pull” concerns arose, the supply held by this group has considerably diminished. The departure of these large-scale investors, also known as whales, from the project could further deteriorate the buying sentiment surrounding PEPE, posing additional challenges for its recovery.
From a technical standpoint, Pepecoin appears to be experiencing a breakdown phase within a descending triangle pattern. This pattern typically indicates a bearish continuation trend, where the price is expected to drop further after breaking below its lower trendline. In this particular case, the price could plummet as much as the distance between the upper and lower trendlines of the triangle. Consequently, analysts predict that PEPE price may decline to $0.00000064 by the end of September 2023, representing an additional 12% drop from its current levels.
Pepecoin’s recent struggles have left investors grappling with a significant decline in value. The consecutive security breaches and the resulting erosion of trust have severely impacted the market sentiment surrounding the memecoin project. Moreover, the departure of key investors has added to the challenges faced by PEPE. Unless significant changes occur, such as improved security measures and a restoration of stakeholders’ confidence, the future prospects for Pepecoin remain uncertain.