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

By:
on Aug 29, 2023
Updated: Sep 1, 2023
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  • PEPE could plummet to zero as a descending triangle setup emerges.
  • PepeCoin faces rug-pull allegations after developers sent $16M worth of tokens to crypto exchanges.
  • Nonetheless, hopeful players continue to accumulate.

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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.

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PEPE’s deadly pattern

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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

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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

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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.

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