After becoming the largest meme coin on Solana, PENGU's price has dropped by about 10% in the past 24 hours. Despite recent popularity, the asset's momentum has slowed, and technical indicators suggest a possible consolidation or further decline.
The Relative Strength Index (RSI) has sharply fallen from 70 to 52.3, indicating reduced buying pressure. However, if the hype around PENGU reignites, it may regain upward momentum and test key resistance levels.
PENGU RSI is rapidly declining.
PENGU's Relative Strength Index (RSI) is currently at 52.3, a significant drop from yesterday's overbought level of 70. The RSI is a widely used momentum indicator that measures the speed and magnitude of price changes, ranging from 0 to 100.
Values above 70 typically indicate overbought conditions, suggesting a possible pullback, while values below 30 indicate oversold conditions, often signaling a potential recovery. An RSI around 50 indicates neutral momentum, with buying and selling pressures relatively balanced.
PENGU RSI. Source: TradingView.
PENGU's RSI is currently at 52.3, indicating a potential consolidation phase in the short term. This level reflects a decrease in buying activity compared to recent highs, but still maintains a slightly bullish tendency. If the RSI remains stable or increases, it may signal a recovery of upward momentum.
Conversely, a further drop below 50 could indicate a weakening bullish sentiment, potentially leading to further consolidation or slight declines in price. If this happens, PENGU may be surpassed by BONK, becoming the largest meme coin on Solana.
PENGU's Average Directional Index (ADX) is currently at 36.6, a significant rise from 20 three days ago. The ADX measures the strength of a trend, ranging from 0 to 100, with values above 25 indicating a strong trend and below 20 suggesting weak or lack of momentum.
An increase in ADX indicates enhanced trend strength, regardless of whether the trend is bullish or bearish.
PENGU DMI. Source: TradingView.
At the same time, the directional indicators can provide insight into the nature of the trend. The +DI, representing buying pressure, has dropped from 35 a day ago to 25.4, indicating a weakening bullish momentum. Conversely, the -DI, reflecting selling pressure, has risen from 8.4 to 14.6, indicating increasing bearish activity.
If the +DI continues to decline while the -DI rises further, PENGU's price may face greater selling pressure, confirming a bearish reversal in the short term.
PENGU Price Prediction: Will it fall below $0.03 again?
PENGU's EMA line currently indicates a bullish trend, but recent price movements suggest the token may be entering a downtrend. If bearish momentum intensifies, PENGU could test the support level at $0.034.
Failing to maintain this level could lead to further declines, with $0.0296 and $0.0251 becoming key levels to watch. The latter is close to PENGU's historical lows.
Penguin Price Analysis. Source: TradingView.
On the other hand, PENGU has garnered significant attention in recent weeks, entering the top ten largest meme coins. If the hype around the token heats up again, PENGU may retest the resistance level at $0.0439.
Breaking this level, coupled with new bullish momentum, could drive PENGU's price to break above $0.05 for the first time.
