The price of PENGU has risen more than 9% in the past 24 hours, reclaiming a market capitalization of $2 billion. This growth solidifies PENGU's position as the second largest meme coin on the Solana network, competing with BONK in the race for the top spot.
Although technical indicators like ADX and RSI indicate improving momentum, they also warn that the current trend has not yet been clearly established. As PENGU trades near important support and resistance levels, the ability to maintain upward momentum will determine whether this altcoin continues to challenge BONK or faces a potential correction.
The current trend of PENGU is not clearly established.
The Average Directional Index (ADX) of PENGU has decreased from 20.5 to 15.5 over the past day, indicating that trend strength is waning. When ADX is below 20, the market is considered to lack a clear trend, often exhibiting accumulation or hesitation.
This decline occurs as the price of PENGU attempts to form an upward trend, suggesting that while buying momentum is emerging, it is still not strong enough to establish a clear and sustainable trend.
Average Directional Index (ADX) of PENGU | Source: TradingView
The ADX index measures the strength of a trend on a scale from 0 to 100. Values below 20 indicate a weak or non-existent trend, while values above 25 indicate a strong and clear trend. With PENGU's current ADX at 15.5, the volatility in price movement is evident. This implies that the upward trend PENGU is trying to establish still lacks sufficient support to achieve upward momentum.
To achieve a clear growth breakout, the ADX needs to exceed 25. Additionally, increased buying pressure will be essential to confirm the emergence of a stronger trend. Until then, PENGU may remain in an accumulation phase, maintaining its position in the Top 10 largest meme coins.
PENGU's RSI has surged after hitting the oversold threshold.
The Relative Strength Index (RSI) of PENGU has rapidly increased from 28.9 to 49.8 in just one day, indicating a strong recovery from oversold conditions. This increase reflects rising buying momentum after a strong sell-off, bringing the asset closer to the neutral zone.
This significant increase indicates a shift in market sentiment, with buyers beginning to balance previous selling pressure.
RSI index of PENGU | Source: TradingView
The RSI index measures the speed and magnitude of price changes on a scale from 0 to 100. An RSI below 30 indicates oversold conditions, often signaling potential recovery. Conversely, an RSI above 70 indicates overbought conditions.
With PENGU's RSI currently at 49.8, the price is in the neutral zone, slightly leaning towards an upward trend. This level suggests the potential for continued recovery, but sustainable momentum will be crucial to push the RSI into the bullish territory above 50. Conversely, if momentum cannot be maintained, the price may revert to an accumulation state or face new selling pressure.
PENGU price prediction: Can PENGU trade above $0.4 in January?
The price of PENGU is currently trading within a range, with support at $0.031 and resistance at $0.034. If a stronger upward trend occurs, PENGU could break through the resistance level of $0.034, paving the way to test the $0.04 level and even $0.0439.
PENGU/USDT chart 4-hour | Source: TradingView
This move could intensify the competition between PENGU and BONK to become the largest meme coin on Solana.
However, if the upward trend is not maintained and the support level of $0.031 is broken, the price of PENGU could drop to $0.029.
A stronger downtrend could push the price lower, with the potential to test the $0.025 level.
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