Honestly what do you expect when you put your money on these scams?$pepe— Wolf (@IamCryptoWolf) August 26, 2023
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 $0.02.PEPE’s price paints deadly descending triangleMarket analyst Nebraskangooner suggests that PEPE’s price could soon plunge to nearly zero due to a descending triangle formation on the four-hour chart.A descending triangle in finance is a bearish continuation pattern characterized by the simultaneous formation of a falling trendline resistance and horizontal trendline support. It resolves after the price decisively breaks below the support and falls by as much as the triangle’s maximum height.$PEPEDescending triangle breaking down.Send this ponzi to zero https://t.co/ZiCp23FJTs pic.twitter.com/CJKaL2Agxx— Nebraskangooner (@Nebraskangooner) August 28, 2023
This puts the bearish target for PEPE’s descending triangle at nearly zero.PEPE hopefuls buy the dipOn 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: SantimentThis 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 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 has been trading 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: TradingViewIf PEPE’s 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.