More volatility might lie in wait for the frog-themed cryptocurrency Pepe (PEPE), judging by a spike in its social discussions.
Pepe's reputation took a big hit after former team members were accused of stealing from the project wallet.
On-chain analytics firm Santiment drew attention to this in a new tweet, stating that Pepecoin has quickly become the top trending crypto topic this weekend after news surfaced of its developers moving 16 trillion PEPE tokens for sale on exchanges.
🐸 If you are riding the wave of #memecoins during these uncertain market conditions, #Pepecoin has quickly become the top trending #crypto topic this weekend. Former team members are accused of removing $16M. Expect even more high volatility than usual. https://t.co/iQLD7h224s pic.twitter.com/UOR4sTcWwv— Santiment (@santimentfeed) August 27, 2023
Given this, Santiment says to expect even more volatility than usual.
"If you are riding the wave of memecoins during these uncertain market conditions, Pepecoin has quickly become the top trending crypto topic this weekend. Former team members are accused of stealing $16 million. Expect even more high volatility than usual," Santiment tweeted.
As previously reported, a statement about the massive token sale was made via the official PEPE X account. It claimed that three team members stole 16 trillion PEPE tokens, or 60% of the 26 trillion multisig tokens, as a result of internal conflict, which has been ongoing since the project's first week of inception. They then transferred the stolen tokens to exchanges, where they were sold.
In another X update, PEPE made it known that the 10.6 trillion tokens left in the PEPE multisig have been transferred to a new address where they will safely rest until used or burned.
PEPE price action
PEPE fell by over 20% for three consecutive days spanning Aug. 24 to 26 before slightly rebounding to where it trades. At the time of writing, PEPE was marginally up 0.51% in the last 24 hours to $0.00000089.
Given that, price volatility might be expected for PEPE given its recent happenings. A likely scenario might be for PEPE to see a rebound or a dead cat bounce in the very short term given that its daily RSI has crossed below oversold levels.
This said, PEPE might aim for the $0.0000013 level, where overhead resistance lies. On the other hand, if a dead cat bounce ensues with PEPE rising briefly before taking a further plunge, support is envisaged at $0.00000078.