The price of Pudgy Penguins (PENGU) has skyrocketed 12% in the past 24 hours, surpassing BONK at one point to become the largest meme coin in the Solana ecosystem, with a current market value of nearly $2.5 billion.
PENGU’s price is currently approaching a key resistance level and could see more upside if the bullish momentum holds. However, traders remain cautious about a possible reversal as the upward momentum is starting to show signs of weakness.
PENGU RSI is now neutral after hitting 70
Currently, PENGU’s relative strength index (RSI) has dropped from 70 to 60.2, showing signs of a slight pullback. Two days ago, the RSI just rose from below 50. Overall, the recent trend shows strong buying, but as the coin moves out of the overbought range, the price has retreated.
While the RSI remains in the neutral to bullish range, the decline in prices suggests that buying has weakened, which could mean the market has entered a period of consolidation.
The RSI is a momentum indicator that measures the speed and magnitude of price changes on a scale from 0 to 100. An RSI above 70 indicates an overbought market, which is usually due for a price correction, while an RSI below 30 indicates an oversold market, which is likely to see a rebound.
Currently, PENGU’s RSI is 60.2, which is in a healthy range, meaning that if buying resumes, the price still has the potential to rise. However, the recent pullback from overbought levels may suggest that PENGU’s price will stabilize in the short term, and the market may need to digest the recent gains before deciding on the next move.
PENGU CMF remains very active
Regarding PENGU’s Chaikin Money Flow (CMF), it is currently at 0.17, slightly below the high of 0.21 on December 25. The CMF turned clearly positive between December 21 and 23, indicating increased buying pressure.
Although CMF fell slightly, it is still in the positive range, indicating that the intensity of capital inflows has weakened, but the overall market still maintains a bullish atmosphere.
CMF is a volume-weighted indicator that measures the accumulation or distribution of an asset over a period of time, with values ranging from -1 to +1. A positive CMF value means that the market is accumulating and buying pressure is strong, while a negative value indicates that the market is distributing and there is selling pressure.
Currently, PENGU's CMF is 0.17, and continued positive inflows indicate that buyers are leading the market, supporting price stability or further gains in the short term. Although it has recently retreated slightly from its highs, this may mean that the market will enter a period of consolidation, balancing the recent gains.
PENGU Price Prediction: Expected to Rise by 29.7%?
If the current uptrend continues, PENGU may soon test the critical resistance level of $0.43, and once this level is broken, further upside will open up.
If the price continues to rise after the breakout, PENGU could hit $0.45 or even $0.50, which would represent an upside of about 29.7% compared to the current price. This breakthrough would solidify PENGU’s position as the largest meme coin on Solana.
However, as shown by the RSI and CMF, the uptrend may begin to weaken, suggesting that the market may be about to reverse. If this happens, PENGU may first test the $0.37 support level. If this support level fails, the price may fall further to $0.30.
In the worst-case scenario, if the long-term downtrend continues, the PENGU price could drop to $0.229.