PEPE Memecoin Takes a Dive: 17% Plummet Sparks Fears of 'Rug Pull

PEPE Memecoin Takes a Dive: 17% Plummet Sparks Fears of 'Rug Pull

The focal point of attention lately has been the frog-themed memecoin, PEPE, which has taken a hit amidst a general pessimistic atmosphere. Within a mere 24-hour span, its price plummeted by a staggering 17%, making a significant dent in its value.

This sudden downturn in PEPE's value appears to be closely linked with recent modifications to a multisig wallet, coupled with concerns arising from a massive transfer of $16 trillion worth of tokens. This transfer has ignited worries within the community, with fears of potential foul play by developers, a situation commonly known as a "rug pull."

Diving into the details, the intriguing price drop of PEPE was catalyzed by the movement of a substantial amount – around $16 million worth – of Pepe tokens from the developers' multisig wallet. These tokens were dispatched to several major cryptocurrency exchanges, including big names like Binance and OKX, all on August 24th.

It's noteworthy that this transfer represents approximately 3.8% of the total PEPE cryptocurrency supply, a staggering $16 trillion. The distribution was quite interestingly split, with about $8.36 million worth of tokens finding their way to OKX, $6.6 million landing on Binance, and an additional $438,000 being sent to Bybit. A remaining sum of $400K took an unidentified destination.

Source: Tradiingview 

Even in the face of consistent declines in the value of PEPE tokens over recent weeks, the coin has managed to find support around the $0.00000082 range. The current trading price of PEPE stands at $0.00000088, but this figure follows an overnight drop of 17%, a substantial decrease. This recent crash has led the value of PEPE tokens to reach their lowest point in two months, clocking in at $0.000000772 on August 25th.

The repercussions of this downward trend have stirred the speculation pot, resulting in an astounding 370% surge in trading volume overnight, pushing the total trading volume to an impressive $350 million, according to CoinMarketCap data.

Nevertheless, it's crucial to take into account some technical indicators. The daily RSI indicator, a measure of overbought or oversold conditions, is currently signaling oversold territory with a reading of 29. 

Moreover, significant moving averages such as the 20, 50, and 100 Simple Moving Averages (SMAs) are positioned above the current price level, which could act as resistance points. Additionally, if the price of PEPE tokens were to dip below the aforementioned demand zone, there's a possibility it could revert back to its initial trading price.

Also Read: XRP Price Teeters at Critical Juncture as 29 Million Tokens Shift 

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.