Pepecoin, a once-popular meme coin, has been hitting the headlines for all the wrong reasons recently. The price of Pepecoin, whimsically named after the internet meme, has seen a steep decline, crashing almost 85% from its May 2023 peak. Analysts anticipate that this downward trend is likely to persist into September and beyond.
The declining price pattern has been attributed to a combination of factors. In the last fortnight alone, Pepecoin experienced two significant security breaches which are anticipated to negatively impact the coin’s price.
In the first instance, on the 24th of August, rogue founding team members transferred a whopping $16 million worth of PEPE tokens to various exchanges, effectively crashing the Pepecoin market by 30%. This stirred concerns among the Pepecoin community, with fears of a potential “rug pull scam” looming.
On the 9th of September, in another security breach, an anonymous individual – known as “lordkeklol” – hacked the official Twitter account for Pepecoin. These consecutive security breaches have negatively affected investor sentiment, leading to a further 12% drop in PEPE price.
More damaging to Pepecoin’s reputation are the indications that big holders, colloquially known as whales, are exiting the project in droves. As per the token’s supply distribution data, addresses holding between 100 million to 1 billion PEPE, who control approximately 96.5% of the currency’s circulating supply, have started offloading their holdings. This paints a gloomy picture for the future of the token.
Adding fuel to the fire is a technical analysis revealing that PEPE has entered the breakdown phase of what appears to be a “descending triangle pattern” – a bearish marker seen in downtrend markets. Given this setup, there is the potential for the PEPE price to drop to a dismal $0.00000064 in September 2023.
In contrast to Pepecoin’s downward spiral, another cryptocurrency, LUNA, has been displaying increased trading volumes due to successful community-approved initiatives. LUNA, led by TFL, has grown by over 5% within the past week, while LUNC has also been exhibiting positive implications in anticipation of a core upgrade by the L1TF developer team. This stark contrast between Pepecoin and LUNA underscores the unpredictable and fluid nature of the cryptomarkets.
However, it is imperative to note that investing in cryptocurrencies involves substantial risk, so thorough research and understanding is essential before any trading move.
Source: Cointelegraph
