PEPE faces resistance after 40% surge

Pepe (CRYPTO:PEPE) has seen a 40% price surge over the past week, bringing its value to $0.000011.

However, the frog-themed meme coin now faces a significant obstacle.

According to market data, PEPE has encountered a liquidity wall of approximately $95 million between $0.000011 and $0.000012, potentially hindering further gains.

The In/Out of Money Around Price (IOMAP) analysis shows that around 8.62 trillion tokens were accumulated at this price level, creating resistance that could prevent PEPE from advancing toward the $0.000015 mark.

As this resistance holds, there is a risk that PEPE may struggle to maintain its recent uptrend.

Adding to the concerns is the Relative Strength Index (RSI), which indicates that PEPE is currently overbought.

The RSI, a technical indicator used to gauge momentum, suggests that a correction may be imminent if momentum weakens.

When the RSI exceeds 70, as it does now, the asset is considered overbought, increasing the likelihood of a price decline.

At press time, PEPE’s price stands at $0.000011.

If the token fails to break the resistance at $0.000012, it could drop back to the $0.000010 support level.

Failure to hold this key level might result in a further decline, with a possible target of $0.0000095 or even as low as $0.0000084 in a more bearish scenario.

On the upside, if bulls manage to push PEPE beyond $0.000013, the token could aim for $0.000015 and potentially higher levels around $0.000020.

For now, PEPE traders are watching closely to see if the meme coin can overcome the liquidity barrier and sustain its rally.

At the time of writing, the Pepe price was $0.00001126.