---
title: "PEPE price to zero? Pepecoin rug-pull allegations put memecoin at risk"
url: https://diffcoin.com/pepe-price-to-zero-pepecoin-rug-pull-allegations-put-memecoin-at-risk/
description: "Pepecoin (PEPE), once an extremely profitable memecoin, has plunged by more than 80% four months after its record high. Now, technicals suggest that the…"
published: 2023-08-29
updated: 2023-08-29
author: "Mila"
site: "Diffcoin"
---

# PEPE price to zero? Pepecoin 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.

## Pepecoin faces rug pull allegations

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](https://twitter.com/search?q=%24pepe&src=ctag&ref_src=twsrc%5Etfw)
> 
> — Wolf (@IamCryptoWolf) [August 26, 2023](https://twitter.com/IamCryptoWolf/status/1695325666349072669?ref_src=twsrc%5Etfw)

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.

## PEPE price paints deadly descending triangle

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](https://twitter.com/search?q=%24PEPE&src=ctag&ref_src=twsrc%5Etfw)
> 
> Descending triangle breaking down.
> 
> Send this ponzi to zero [pic.twitter.com/CJKaL2Agxx](https://t.co/CJKaL2Agxx)
> 
> — Nebraskangooner (@Nebraskangooner) [August 28, 2023](https://twitter.com/Nebraskangooner/status/1696280216291750113?ref_src=twsrc%5Etfw)

This puts the bearish target for PEPE’s descending triangle at nearly zero.

## PEPE hopefuls buy the dip

On a brighter note, some PEPE investors have used the token’s price decline as an opportunity to buy the dip. Notably, the supply held by entities with a balance between 10,000 and 100,000 PEPE tokens has jumped substantially since Aug. 27.

*PEPE supply distribution. Source: Santiment*

This accumulation is underway as Pepecoin hopefuls assert that the market can absorb any further selling pressure from the token devs.

“The @pepecoineth devs used to hold 6% of the PEPE and sold 16T tokens equaling 4% of the supply,” [noted](https://twitter.com/OG_Kenobi_Hello/status/1694834540370362839) Kenobi, a Pepe investor, adding:

> “No other wallet (besides exchanges) holds more than 0.9% of the supply, except the Pepe dev wallet, which now holds 2%. This is long-term bullish for PEPE. SELL THE REMAINING 2%!!!

Technically, PEPE trades near a recognized accumulation area around $0.00000085 that witnessed a 120% price rally during the June-July 2023 session. Thus, chances of a market rebound at this level are high given PEPE’s oversold relative strength index (RSI).

*PEPE/USDT daily price chart. Source: TradingView*

If PEPE price bounces here, then the next upside target comes to be its 50-day exponential moving average (50-day EMA; the red wave) near $0.00000121 in 2023, up around 45% from the current price levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

[Source link](https://cointelegraph.com/news/pepe-price-zero-rug-pull-memecoin-risk)