PENGU Drops 10%, Risks Losing Market Cap Position to BONK

PENGU price has dropped roughly 10% in the last 24 hours after becoming Solana’s biggest meme coin. Despite its recent popularity, the asset’s momentum has slowed, with technical indicators suggesting potential consolidation or further downside.

The Relative Strength Index (RSI) has fallen sharply from 70 to 52.3, indicating reduced buying pressure. If PENGU’s hype reignites, however, it could regain upward momentum and test key resistance levels.

PENGU RSI Is Going Down Fast

The Relative Strength Index (RSI) for PENGU is currently at 52.3, a significant drop from yesterday’s overbought level of 70. RSI is a widely used momentum indicator that measures the speed and magnitude of price changes on a scale from 0 to 100.

Values above 70 typically indicate overbought conditions, suggesting a potential for a pullback, while values below 30 signal oversold conditions, often pointing to a possible recovery. An RSI around 50 indicates neutral momentum, where buying and selling pressures are relatively balanced.

PENGU RSI. Source: TradingView.

With PENGU’s RSI now at 52.3, the indicator suggests a period of consolidation in the short term. This level reflects reduced buying activity compared to recent highs but still maintains a slightly bullish bias. If the RSI holds steady or moves higher, it could signal a resumption of upward momentum.

Conversely, a further drop below 50 might indicate a waning bullish sentiment, potentially leading to additional price consolidation or minor declines. If that happens, PENGU could be surpassed by BONK as Solana’s biggest meme coin.

PENGU DMI Chart Shows the Downtrend Could Get Stronger

PENGU Average Directional Index (ADX) is currently at 36.6, rising significantly from 20 just three days ago. The ADX measures the strength of a trend on a scale from 0 to 100, with values above 25 indicating a strong trend and below 20 suggesting weak or absent momentum.

A rising ADX signifies increasing trend strength, regardless of whether the trend is bullish or bearish.

PENGU DMI. Source: TradingView.

Meanwhile, the directional indicators provide insight into the trend’s nature. The +DI, which represents buying pressure, has declined to 25.4 from 35 a day ago, indicating weakening bullish momentum. Conversely, the -DI, reflecting selling pressure, has increased to 14.6 from 8.4, signaling growing bearish activity.

If the +DI continues to drop and the -DI rises further, PENGU price could face increased selling pressure, confirming a bearish reversal in the short term.

PENGU Price Prediction: Will It Fall Below $0.03 Again?

PENGU EMA lines currently suggest a bullish setup, but recent price action indicates the coin may be entering a downtrend. If the bearish momentum intensifies, PENGU could test the support at $0.034.

Failure to hold this level might lead to further declines, with $0.0296 and $0.0251 emerging as key levels to watch. The latter is near PENGU’s historical lows.

PENGU Price Analysis. Source: TradingView.

On the other hand, PENGU has garnered significant attention in recent weeks, entering the top 10 ranking among the largest meme coins. If the hype surrounding the coin revives, PENGU could retest the $0.0439 resistance.

A breakout above this level, coupled with renewed bullish momentum, might propel PENGU price above $0.05 for the first time.