The price of Podgy Penguins (PENGU) has dropped more than 9% in the past 24 hours, after its brief moment as the top meme coin on Solana, it has now been surpassed by BONK and ai16z.
The recent decline comes amid slowing momentum, as reflected in key technical indicators such as the RSI and DMI.
PENGU RSI is calming down
PENGU Relative Strength Index (RSI) is at 45.9, reflecting a significant decline from 68.3 recorded on January 1. This decline indicates that buying pressure has weakened, and the recent momentum that pushed the price higher has slowed.
The current RSI level puts PENGU in the neutral zone, indicating a balance between buyers and sellers with no clear dominance from either side.
RSI is a popular momentum indicator that measures the speed and magnitude of price changes on a scale of 0 to 100. Readings above 70 indicate overbought conditions, often signaling a potential pullback, while readings below 30 indicate oversold conditions and a potential bounce.
With the PENGU RSI at 45.9, the indicator indicates that the asset is neither overbought nor oversold, indicating a consolidation phase. In the short term, this level may indicate limited price movement unless the market sentiment changes significantly, which could be driven by an increase in buying or selling activity.
PENGU's downtrend is getting stronger.
The DMI chart for PENGU shows that the ADX is currently at 24.2, indicating a moderately strong trend. The ADX measures the strength of a trend on a scale of 0 to 100, indicating that while there is noticeable momentum in the market, it is not yet decisively strong.
The +DI (Directional Indicator) has dropped to 22.3 from 34.6 just two days ago, indicating a decrease in buying pressure, while the -DI has risen to 22.6 from 11.2, reflecting an increase in selling pressure, which could see PENGU lose its status as the 3rd largest meme coin on Solana for WIF.
These shifts in directional indicators, with -DI slightly exceeding +DI, indicate that bearish momentum is starting to gain strength in the short term. Close values of +DI and -DI indicate a market in transition, where neither buyers nor sellers have a decisive advantage.
For PENGU price, this could mean continued consolidation or a potential bearish bias unless +DI regains its strength and ADX rises further above 25 to confirm a stronger trend.
PENGU Price Prediction: 27.6% Possible Correction
PENGU's EMA lines indicate that a death cross could form soon, which is a bearish signal as the short-term EMA crosses below the long-term EMA.
If this happens, it could strengthen the current downtrend, pushing PENGU price towards the nearest support at $0.0296. Failure to hold this level could lead to further declines, with the next support at $0.025 representing a potential 27.6% retracement.
Conversely, if the trend reverses and the bullish momentum gains control, PENGU price could retest the $0.0409 resistance level. Breaking this resistance could pave the way for further gains, with a potential rally to $0.0439, representing a 26.5% gain and potentially sending PENGU price soaring to the top spot among the top Solana meme coins, as it did last week.