PEPE price to zero? Rug-pull allegations put memecoin at risk
Pepecoin (PEPE), once an extremely profitable memecoin, has plunged by more than 80% four months after its record high. Now, technicals suggest that the memcoin could be at risk of even bigger losses in the coming weeks or months.
On Aug. 24, several rogue Pepecoin developers changed the number of signatures required to move tokens from their multi-sig wallet from five-out-of-eight to two-out-of-eight. Then, they sent $16 million worth of PEPE to crypto exchanges, suggesting that they wanted to sell.
A segment of market analysts viewed these mov as a hint of an impending "rug pull," raising fears that the PEPE price may crash to zero in 2023.
Another meme coin, another rug pull.
Honestly what do you expect when you put your money on these scams?$pepe
Previous "rug pulls" such as MULTI, the native token of Multichain's cross-chain bridging protocol, has dropped nearly 98% from its peak. The decline has appeared partially due to allegations that Multichain's $125 million hack in July 2023 was part of a broader rug-pull scam.
Similarly, in July 2023, a crypto developer associated with the Encryption AI project committed a $2 million rug-pull fraud. As a result, the Encryption AI token, 0XENCRYPT, crashed 99% to an all-time low of $0.02.
Market analyst Nebraska Gooner suggests that PEPE price could soon plunge to nearly zero due to a descending triangle formation on the four-hour chart.
A descending triangle in finance is a bearish continuation pattern characterized by the simultaneous formation of a falling trendline resistance and horizontal trendline support. It resolves after the price decisively breaks below the support and falls by as much as the triangle's maximum height.
$PEPE
Descending triangle breaking down.
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