What reasons lie behind the long-standing gloomy clouds on the side of Pepe (PEPE)?
According to an analysis by Cointelegraph using on-chain, fundamental and technical indicators, the decline on the PEPE side may continue.
Pepecoin lost the popularity it created in a short time again in a short time. The PEPE price has fallen nearly 85 percent from its peak of $0.00000448 in May 2023. Cointelegraph suggested that the bearish scenario may continue. So what are the reasons behind the decline of PEPE?
Pepecoin (PEPE) decline and its reasons
Pepecoin (PEPE) appeared on decentralized exchange Uniswap. It has progressed to Binance with the popularity it has achieved in a short time like a few months. It reached a billion-dollar market capitalization with its listing on Binance. The project was launched as the new Dogecoin or Shiba. All this positive process disappeared with successive news flows. PEPE is down close to 85 percent from its peak price point.
The decline in PEPE price and the possibility of continuing this decline made us wonder about the reasons behind the back door. Cointelegraph covered three reasons for PEPE’s decline.
Security breaches in Pepecoin (PEPE)
Perhaps the most important point in the decline of Pepecoin (PEPE) was security breaches. Pepecoin suffered two security breaches in two weeks. First, on August 24, Pepecoin’s team broke through. Some members of the team transferred $16 million worth of PEPE to the exchanges and destroyed the environment of trust. This reduced the price of PEPE by 30 percent.
Then, on September 9, there was a security breach. Pepecoin’s official X platform has confirmed that it has hacked its Telegram channel.
❌❌ $PEPE Announcement❌❌
The old telegram for $PEPE is hacked and no longer in our control. The “lordkeklol” account has been compromised. Whoever has gained access to this account is using it to push scams and deceive people and launch other coins. This person is lying and… pic.twitter.com/jxlYwoSP1Q
— Pepe (@pepecoineth) September 9, 2023
News of the Telegram hack also reduced the PEPE price by nearly 15 percent.
Pepecoin (PEPE) whales are leaving the project
In the images reflected in the Pepecoin (PEPE) blockchain data, it was seen that the whales abandoned the project. Cointelegraph reported that wallets with balances of 100 million to 1 billion PEPE represent 96.5 percent of the maximum supply. This supply distribution plummeted with the implosion of the Pepecoin team. Big wallets began to leave the project.
Breakout in Pepecoin (PEPE) technical analysis
Looking at the technical analysis for Pepecoin (PEPE), it was seen that the descending triangle formation in the project entered the breaking phase. PEPE has entered the necessary environment to move downwards.
A descending triangle, which means a downtrend, means the price may continue to pull back. The pattern unravels when the lower trend price line is broken and there is a drop as much as the height between the upper and lower trend lines of the triangle.
Based on this technical analysis, Cointelegraph suggested that PEPE price could decline as low as $0.00000064.
