PENGU has surged by 12% in just 24 hours, overtaking BONK to become the largest memecoin in the Solana ecosystem.
Uptrend
PENGU’s climb puts it right up against key resistance levels, and if the bullish momentum keeps going, we could see some serious gains.
But hold your horses, traders are keeping a close eye on potential reversals since there are early signs that this uptrend might be losing steam.
Currently, PENGU’s RSI sits at 60.2, down from a peak of 70 just hours earlier, and this drop comes after a strong rally that lifted the RSI from below 50 only two days ago.
While this movement shows pretty solid buying momentum, the slight pullback indicates that we might be entering a consolidation phase.
Buyers unite
An RSI above 70 usually signals overbought conditions, which can lead to price corrections, while an RSI below 30 suggests oversold conditions and a potential rebound. With PENGU at 60.2, it’s still in a healthy range for upward movement, but only if buyers decide to jump back in.
PENGU’s Chaikin Money Flow, the popular CMF indicator now sits at 0.17, slightly down from its peak of 0.21 on December 25. This follows a notable shift from negative values just days earlier, showing that buying pressure has really ramped up recently.
Positive CMF values indicate strong buying activity, while negative values suggest selling pressure.
With PENGU’s CMF still positive at 0.17, it looks like buyers are still in control, which bodes well for price stability or further gains in the near term.
Resistance is futile
If this uptrend continues, PENGU could soon be testing the $0.043 level, a key level that could lead to even more gains, and the good news is that if it breaks through that resistance, we might see prices climb to $0.045 and even $0.050, which would represent a potential upside of about 29.7% from current levels.
As indicated by the RSI and CMF trends, there’s a chance the uptrend could be losing strength, so if that happens, PENGU might test support at $0.037; if it falls below that, we could see it drop further to $0.030. In a worst-case scenario?
A prolonged downturn could push PENGU down to around $0.023.
