Pepecoin faces rug pull allegations
On August 24th, a surprising development unfolded as a few Pepecoin developers made adjustments to the multi-sig wallet’s signature requirements, reducing it from five-out-of-eight to two-out-of-eight. Shortly after, they took action by transferring a substantial amount of $16 million worth of PEPE to various crypto exchanges, leaving speculation about their intentions.
Market analysts are closely observing these moves, with some perceiving them as a potential precursor to a concerning event known as a ‘rug pull.’ This unsettling possibility has generated concerns within the community, as fears arise about the future of PEPE’s price, with worst-case scenarios even envisioning a crash to zero by 2023. Stay tuned for insightful updates on this captivating story.
Looking back at the past, we can learn valuable lessons from rug pulls like MULTI, the native token of Multichain’s innovative cross-chain bridging protocol. Sadly, it experienced a steep decline, plummeting nearly 98% from its peak. Rumors of a wider rug-pull scam emerged following Multichain’s unfortunate $125-million hack in July 2023.
Similarly, in another unfortunate incident during the same month, a crypto developer associated with the Encryption AI project executed a rug-pull fraud amounting to $2 million. The consequences were drastic, causing the Encryption AI token, 0XENCRYPT, to suffer a staggering crash of 99% and reach an all-time low of just $0.02. These regrettable occurrences emphasize the critical importance of vigilance and sound decision-making within the crypto realm.
A Glimpse into PEPE’s Price: Unveiling the Deadly Descending Triangle
Within the realm of financial analysis, a descending triangle pattern has caught the attention of Nebraskangooner, who foresees a potential plunge in PEPE’s price. This formation has emerged on the four-hour chart, hinting at an imminent bearish trend.
A descending triangle manifests as a compelling bearish continuation pattern, characterized by the simultaneous development of a downwards trendline resistance alongside a flat trendline support. The pattern concludes when the price boldly breaches the support level, triggering a potential downfall matching the triangle’s maximum height.
This puts the bearish target for PEPE’s descending triangle at nearly zero.
PEPE hopefuls buy the dip
In an optimistic twist, savvy PEPE investors have seized the token’s price dip as a chance to dive in. Interestingly, the amount held by holders with 10,000 to 100,000 PEPE tokens has surged significantly since Aug. 27.
As Pepecoin enthusiasts accumulate, they confidently declare that the market has the strength to withstand any additional selling pressure from the token developers.
Kenobi, a PEPE investor, added:
Excitingly, PEPE has been hovering near a well-established accumulation zone around $0.00000085, where a massive 120% rally occurred from June to July 2023. Furthermore, PEPE’s oversold relative strength index (RSI) suggests a potential market recovery at this level.
A potential price bounce could position PEPE’s next target at its 50-day exponential moving average (50-day EMA) near $0.00000121 in 2023, representing an impressive 45% increase from current levels.