Frog-themed meme coin Pepe (PEPE) price has increased by 40% in the last seven days. This jump is in tune with the broader market relief.

Although the recent rally has sparked excitement, data shows that Pepe has hit a liquidity wall that could hinder further upside. This analysis explains what market participants should expect as the meme coin faces increased resistance.

Pepe Signal Casts Doubts on Further Upside

On September 16, Pepe’s price was $0.0000071. However, the gains of the last two weeks have sent the price to $0.000011 — a region where it currently stands. Due to the performance, there have been calls for PEPE to climb toward $0.000015.

However, the In/Out of Money Around Price (IOMAP) shows that it could be challenging. The IOMAP identifies the average price addresses purchased a token and shows whether they are making money relative to the current price or not.

When there is a higher volume at a price range, the region could either serve as support or resistance. For PEPE, the volume accumulated between $0.000011 and $0.00012 is 8.62 trillion tokens, valued at approximately $95 million, and is out of money.

Read more: How To Buy Pepe (PEPE) and Everything You Need To Know

This $95 million is higher than the volume purchased between $0.000010 and $0.000011. Since the former is higher, it indicates that the meme coin could face a sell wall as it approaches $0.000012. Consequently, failure to break this resistance could pull the uptrend.

Another indicator fueling this bias is the Relative Strength Index (RSI), a technical oscillator used to measure momentum. When the RSI rises, momentum is bullish. However, a falling reading suggests bearish momentum.

The RSI also shows whether a cryptocurrency is overbought or oversold. Readings above 70.00 mean it is overbought, while those below 30.00 mean it is oversold. As seen below, the RSI on the PEPE/USD daily chart shows that the token is overbought, and the price might decline.

PEPE Price Prediction: Bearish Days Ahead

At press time, PEPE’s price is $0.000011. However, the daily chart shows the appearance of a sell signal as the meme coin attempts to enter the supply zone at $0.000013.

Following shift, the token may face challenges in rallying toward the expected $0.000015 mark. Instead, it might have to focus on maintaining support at $0.000010. Should the token fail to defend this crucial level, it could have serious consequences for the meme coin, potentially driving the price down to $0.0000095.

Read more: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users

In a highly bearish situation, PEPE’s price might decline to $0.0000084. Meanwhile, the token’s value could resist another drop if bulls successfully push it beyond $0.000013. In that scenario, the cryptocurrency might move closer to $0.000020.

The crypto market is gearing up for one of its biggest token unlock events in 2024, with over $3 billion worth of tokens set to be released in October. 

BeInCrypto has highlighted the top three unlocks that will introduce a substantial influx of assets into the market.

October Token Unlocks: What to Expect

Data from TokenUnlocks indicates that approximately $1.6 billion of this month’s token unlocks are classified as cliff unlocks. In the context of token unlock events, cliff refers to tokens set to release on a schedule that’s more periodic than daily, such as weekly, monthly, or yearly.

Since token unlocks introduce previously unavailable tokens into circulation, investors and traders closely monitor these events because they affect the market environment. While some view these events as growth opportunities, they also carry the risk of increased selling pressure.

“Uptober is just around the corner — Stay Informed, Not FOMO-Driven. With $3.46B in token unlocks scheduled for the month, it’s essential to keep a close eye on the market,” the Token Unlocks team wrote.

This month’s most significant cliff token unlocks include Celestia (TIA), Sui (SUI), Immutable (IMX), Aptos (APT), and Arbitrum (ARB).

Sui (SUI)

On October 1, Sui will unlock 64.19 million tokens. These tokens, worth approximately $106 million, account for 2.40% of its circulating supply. The distribution of these tokens will be as follows:

• Series A: 19.84 million SUI ($32.93 million)
• Series B: 19.32 million SUI ($32.07 million)
• Early contributors: 10.34 million ($17.16 million)
• Mysten Labs treasury: 2.07 million SUI ($3.44 million)
• Community reserve: 12.63 million SUI ($20.96 million)

Read more: Everything You Need to Know About the Sui Blockchain

Immutable (IMX)

Following Sui, Immutable will release 32.47 million IMX tokens on October 4. These tokens, worth roughly $59.10 million, translate to 2.02% of IMX’s circulating supply. They will be distributed to the ecosystem and project developments, with the details as follows:

• Ecosystem development: 15.91 million IMX ($28.96 million)
• Project development: 16.56 million IMX ($30.14 million)

Aptos (APT)

Aptos’ unlock on October 11 will see 11.31 million APT tokens enter the market. This figure equals 2.25% of APT’s total supply, with a total value of $96.25 million.

The distribution of these tokens will be as follows:

• Foundation: 1.33 million APT ($11.35 million)
• Community: 3.21 million APT ($27.32 million)
• Core contributors: 3.96 million APT ($33.69 million)
• Investors: 2.81 million APT ($23.90 million)

Read more: Where To Buy Aptos (APT): 5 Best Platforms for 2024

Arbitrum (ARB)

On October 16, Arbitrum will release 92.65 million ARB tokens, worth $61.90 million. This significant unlock represents 2.56% of ARB’s circulating supply. The distribution of these tokens will be as follows:

• Team, future team, and advisors: 56.13 million ARB ($37.50 million)
• Investors: 36.52 million ARB ($24.40 million)

Celestia (TIA)

Finally, on October 30, Celestia will unlock 175.56 million TIA tokens, valued at $1.12 billion. These tokens will be allocated to early backers and initial core contributors. The breakdown of this token unlock allocation will be as follows:

• Early Backers Series A&B: 65.01 million TIA ($414.76 million)
• Early Backers Seed: 52.47 million TIA ($334.76 million)
• Initial Core Contributors: 58.08 million TIA ($370.55 million)

Beyond these major unlocks, the market will also see cliff token unlocks from other notable projects in October, including Starknet (STRK), ZetaChain (ZETA), and ApeCoin (APE).

Wyoming Senator Cynthia Lummis criticized the US Securities and Exchange Commission (SEC) and its chair, Gary Gensler, urging for improved crypto regulation in the country.

Many within the crypto community have also expressed frustration, accusing Congress of unfairly placing the blame solely on the SEC.

Senator Lummis Predicts Gary Gensler’s Exit as SEC Chair

Speaking on CNBC’s Squawk Box, Lummis suggested that Gensler may step down as SEC chair next year, though she acknowledged that he “loves the job” and might not want to leave. She noted, however, that this scenario could change if Vice President Kamala Harris wins the November elections.

Lummis voiced her disapproval of Gensler, primarily due to his failure to recognize Bitcoin (BTC) and Ethereum (ETH) as commodities. She also implied that other cryptocurrencies may qualify as commodities and called for clearer regulatory guidelines.

“We need to have a clear definition. The Howey Test is available to us, and as it has been updated, there are maybe other assets just besides Bitcoin and Ethereum that would qualify for the jurisdiction of the Commodity Futures Trading Commission,” the Senator added.

Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman

Lummis indicated the need for clearer crypto regulation in the US, saying it would give clarity to companies. She highlighted the EU “very effective” approach to crypto regulation, urging the US not to let other countries get ahead.

The Senator expressed concern that the SEC claims to have all the necessary tools for regulation, but criticized how they are being applied. Specifically, she pointed to the agency’s strategy of “regulation by enforcement,” which has resulted in numerous court cases. Additionally, she argued that the SEC’s use of penalties to regulate the industry was misguided.

“You can commit fraud with yachts, with art, with coins, with minerals. It is not the asset itself that is fraudulent,” she said.

On the other hand, Lummis agreed that Congress needs to regulate crypto in the country and not leave the full mandate to the SEC. One investigative journalist echoed this sentiment, criticizing Congress for neglecting its own duties and unfairly placing the blame on the SEC for the regulatory confusion in the crypto space.

“Congress, including Lummis, should be writing the rules in the first place! Instead, Gensler’s left playing referee, making the whole situation look like a game of dodgeball with no rulebook. Lummis is working with Senator Gillibrand on a proposal — because maybe someone finally realized that Congress should stop pointing fingers and start writing laws,” JungleIncXRP wrote.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

This debate comes just days after the SEC commissioners appeared for a two-day session before House committees. Both Congress and the Senate Banking Committees reviewed the agency’s handling of crypto regulations.

Lummis isn’t alone in opposing the SEC’s approach. As BeInCrypto reported, 42 Congressmen are also calling on the securities regulator to allow banks to custody crypto.

As the US elections near, SEC Chair Gary Gensler’s future is uncertain. Donald Trump has pledged to remove him if elected, while Kamala Harris narrowly leads the race, according to Polymarket.

Despite the growing calls for Gensler’s exit from the crypto community, Harris could potentially appoint him as Treasury Secretary if she wins the presidency.