3 Factors Indicating Pepe's Price Will Continue to Decline in September

Ramona Galas
25 Sep 2023
A combination of on-chain, fundamental, and technical indicators suggests that Pepecoin's price may continue to decrease in the upcoming month.

Pepecoin has witnessed a substantial decline, nearly 85%, from its all-time high of $0.00000448 in May 2023. Unfortunately, this bearish trend is expected to persist into September.

Successive Security Breaches

Over the past two weeks, Pepecoin has encountered two troubling security breaches. Firstly, on August 24, members of the rogue founding team transferred $16 million worth of PEPE tokens to exchanges, sparking fears within the community of a potential "rug pull scam." This event resulted in a 30% drop in the PEPE market.

Subsequently, on September 9, Pepecoin's official X (formerly Twitter) account confirmed that an anonymous entity known as "lordkeklol" had hacked their accredited Telegram channel. This revelation led to a further 12% decline in PEPE's price, indicating that these back-to-back security breaches have negatively impacted investor trust in the memecoin project.

Exodus of Pepe Whales

Additional evidence of investor departure from the Pepecoin project can be gleaned from the token's supply distribution data. Particularly, addresses holding between 100 million and 1 billion PEPE tokens, representing a significant portion of the maximum circulating supply (approximately 96.5%), have significantly reduced their holdings since concerns over rug pulls emerged. This mass exodus of whales could further dampen buying sentiment in the PEPE market.

Descending Triangle Breakdown

From a technical standpoint, PEPE has entered the breakdown phase of a descending triangle pattern. In a downtrend, a descending triangle is viewed as a bearish continuation pattern. The pattern typically resolves when the price breaches the lower trendline, potentially leading to a decline equivalent to the height between the triangle's upper and lower trendlines.

Due to this technical setup, there is a risk that PEPE's price could fall to $0.00000064 by September 2023, representing a roughly 12% decrease from its current price levels.

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