Pepe (PEPE), the meme coin that’s captivated the cryptocurrency world, has recently seen an impressive price rally. After hitting $0.0000071 on September 16, PEPE surged to $0.000011, leading many in the crypto community to speculate that the token might soar to $0.000015. However, market data suggests that this upward trajectory might hit a liquidity wall, presenting significant challenges for further gains.
The IOMAP Barrier – What It Means For PEPE
One of the key indicators signaling trouble for PEPE is the In/Out of the Money Around Price (IOMAP). This metric tracks the average price at which token holders purchased PEPE and whether they are currently profiting or losing relative to the coin’s current value. The IOMAP reveals that a large volume of PEPE, approximately 8.62 trillion tokens worth $95 million, was acquired between $0.000011 and $0.000012. This range is now acting as resistance because many investors are “out of the money,” meaning they bought in at higher prices and may be eager to sell.
Since the trading volume between $0.000011 and $0.000012 exceeds the volume between $0.000010 and $0.000011, the $95 million sell wall presents a significant hurdle. Unless there’s a surge of buying pressure to break through this resistance, PEPE’s rally could stall out, leaving the token vulnerable to a price drop.
RSI Suggests PEPE May Be Overbought
Adding to the concerns is the Relative Strength Index (RSI), a widely used momentum indicator in technical analysis. The RSI for PEPE currently indicates that the token is in overbought territory. Typically, an RSI above 70 suggests that an asset is overvalued and could be due for a price correction. At the time of writing, PEPE’s RSI has crossed into this danger zone, hinting that the bullish momentum could be weakening.
With the RSI flashing warning signs and a looming sell wall, PEPE might struggle to maintain its upward momentum, especially as it approaches the $0.000012 resistance level.
A Critical Moment for PEPE
At press time, PEPE is holding steady at $0.000011. However, the daily chart suggests the emergence of a sell signal, coinciding with PEPE’s attempt to enter the supply zone around $0.000013. For the meme coin to reach the coveted $0.000015 mark, it will need to break through multiple layers of resistance—a task that appears increasingly difficult given current market conditions.
Should PEPE fail to maintain support at $0.000010, the consequences could be severe. A failure to defend this critical level could lead to a sharp decline, with prices potentially falling to $0.0000095 or lower.
Also Read: PEPE Soars 58% in Two Weeks – Technical Indicators Signal Strong Bullish Momentum
While PEPE’s recent rally has injected excitement into the meme coin space, the token now faces significant headwinds. The combination of a looming sell wall and overbought technical indicators suggests that PEPE may be at a crossroads. If it can break through its liquidity barriers, a further rally is possible. However, if resistance holds, investors should prepare for a possible pullback.
The coming days will be crucial for PEPE, as the meme coin navigates this critical resistance zone. Traders and holders alike should keep a close eye on key support and resistance levels, as the next move could determine whether PEPE continues its upward journey or faces a sharp correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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