Analysts Warn: PEPE Still At Risk! Can See Zero

The PEPE price is down 80% from its peak price after last week’s rug pull scandal. Technical analysts suggest that the price risks even greater losses in the coming weeks or months…

Fall isn’t over for PEPE: It can add new 0’s

Things turned upside down for PEPE, which debuted in April, achieved triple-digit returns in a short time, and even found its way into the Binance list. Last week, mysterious PEPE transactions linked to the project team triggered a 30% drop in price. Some analysts predict that the decline will continue and drag the price to new lows.

Nebraskangooner, one of the analysts of this opinion, predicted that the price of PEPE could soon drop to almost zero due to the descending triangle formation on the four-hour chart. The descending triangle is characterized by the simultaneous occurrence of falling trendline resistance and horizontal trendline support. This pattern usually leads to a decline at the end. This is resolved when the price steadily drops below the support and drops by the maximum height of the triangle.

The forecast brings the bearish target for PEPE’s descending triangle almost near zero.

Hopeful PEPE investors keep buying at bottom price

According to different reports, some PEPE investors see the price drop as an opportunity. In particular, the PEPE supply of wallets with a balance between 10,000-100,000 has increased significantly since August 27.

This backlog continues as Pepecoin hopefuls claim that the market can handle the additional selling pressure from token developers. As we quoted as Kriptokoin.com, the anonymous founder of PEPE reassured investors on Sunday.

PEPE investor Kenobi said, “The @pepecoineth developers held 6% of PEPE. It was selling 16 trillion tokens, which is 4% of the supply,” he says. In his statements that delight investors, “No other wallet (other than exchanges) holds more than 0.9% of the supply, apart from Pepe’s wallet, which currently owns 2%. This is a long-term bullish signal for PEPE. SELL THE REMAINING 2%!!!”” he wrote.

Technically, PEPE witnessed a 120% price increase in the June-July 2023 session. It is currently trading around $0.00000085. Therefore, given the oversold relative strength index (RSI) of PEPE, the market is likely to recover at this level.

If the price of PEPE bounces here, the next upside target will be the 50-day EMA. If the meme token reaches this level, it will rise 45% to touch $0.00000121.

Behind the scenes of rug pull claims

On August 24, several malicious Pepecoin developers, mysterious transfers took place. The developers reduced the number of signatures required to move tokens from multi-signature wallets from five-eighths to two-eighths. They then sent $16 million worth of PEPE to crypto exchanges, claiming they wanted to sell it. Some of the market analysts saw these moves as a sign of an impending “retreat”. It has raised fears that the price of PEPE could drop to zero in 2023.