PepeCoin (PEPE) prints a ‘deadly’ pattern following rug-pull allegations

PepeCoin has lost its appeal as profitable meme crypto after losing over 80% since its record peak four months ago. Furthermore, the price outlook shows the alt could endure further declines in the upcoming weeks or months, sending prices to zero.

PEPE’s deadly pattern

$PEPE

Descending triangle breaking down.

Send this ponzi to zero https://t.co/ZiCp23FJTs pic.twitter.com/CJKaL2Agxx

— Nebraskangooner (@Nebraskangooner) August 28, 2023

Renowned analyst @Nebraskangooner stated that PepeCoin could witness massive dips to zero soon as the 4-hour chart paints a descending triangle pattern. The bearish continuation formation comprises a plummeting trendline resistance and horizontal support.

A descending triangle emerges after the token’s price breaches beneath the support floor. The pattern indicates that PEPE can lose its entire value.

PepeCoin’s rug pull allegations

PepeCoin attracted market attention on 24 August after several developers altered signatures needed to move assets from multi-sig wallets, reducing them to 2-out-of-8 from 5-out-of-8. They then sent PEPE worth $16 million to cryptocurrency exchanges, potentially ready to sell.

The community perceived the developments as a rug pull hint, triggering fears of massive price slumps for the meme token.

Previous rug-pulls have seen crypto assets plummeting relentlessly. For instance, invezz.com reported how SARP tokens plunged by 99% after developers executed a $3M heist.

Hopeful players accumulate PEPE

On the positive side, some PEPE enthusiasts have spotted a buy-the-dip opportunity from the plummeting PEPE price. Players holding 10,000 – 100,000 PEPE coins have substantially added to their bags since 27 August.

The accumulation shows investors hope PepeCoin will absorb more selling momentum and launch recoveries.

PEPE hovers near the $0.00000085 accumulation area, where a 120% price surge surfaced in June – July 2023. Therefore, the alt might bounce back from this level and target the 50-day EMA at $0.00000121, translating to a 45% uptick from current prices.

Only market friendly crypto updates and a broad-based rally will rescue the altcoin from its downside stance.