The price of Pudgy Penguins (PENGU) has risen 12% in the last 24 hours, surpassing BONK to become the largest meme coin in the Solana ecosystem with a market capitalization of approximately $2.5 billion.
PENGU’s current uptrend is moving it towards key resistance levels with the potential for significant upside if the bullish momentum continues. However, traders are also wary of a possible reversal as the uptrend shows early signs of losing strength.
PENGU RSI is now neutral after reaching 70
The PENGU Relative Strength Index (RSI) is currently at 60.2, up from 70 just a few hours ago after rising below 50 just two days ago. This recent move reflects a strong surge in buying momentum followed by a slight pullback as the token exited the overbought zone.
While the RSI remains in a neutral to bullish range, its decline suggests a cooling in buying activity, potentially indicating that the market is entering a consolidation phase.
The RSI is a momentum oscillator that measures the speed and magnitude of price movements on a scale of 0 to 100. An RSI above 70 indicates overbought conditions, often leading to a price correction, while an RSI below 30 suggests oversold conditions, signaling a potential rebound. .
With PENGU’s RSI at 60.2, the coin is in a healthy range, suggesting there is still room for a move higher if buyers regain control. However, the recent decline from overbought levels means that PENGU’s price may stabilize in the short term, allowing the market to take profits before deciding on its next direction.
PENGU CMF is still very positive
PENGU Chaikin Cash Flow (CMF) is currently at 0.17, down slightly from its December 25 peak of 0.21. This follows a significant shift from negative CMF readings between December 21 and December 23, indicating that buying pressure has increased significantly over the past few years. days.
While the CMF remains solidly positive, the slight decline suggests the intensity of capital inflows has eased but still reflects a bullish market environment.
CMF is a volume-weighted indicator that measures the accumulation or distribution of an asset over time, and its values range from -1 to +1. Positive CMF values indicate accumulation and strong buying pressure, while negative values signal distribution and selling activity.
With PENGU’s CMF at 0.17, continued positive inflows suggest buyers remain in control, supporting the likelihood of price stability or further growth in the short term. However, a slight decline from the recent peak could signal a possible period of consolidation as the market balances out recent upward momentum.
PENGU Price Forecast: Potential for another 29.7% upside?
If the current uptrend continues, PENGU price could soon test $0.43, a key level that could pave the way for further gains.
Breaking this resistance could see PENGU rise to $0.45 and even $0.50, which would represent a 29.7% upside potential from current levels. This will further strengthen PENGU’s position as the largest meme coin on Solana.
However, as the RSI and CMF highlight, the uptrend may be losing momentum, indicating a possible reversal. If this happens, PENGU could test the $0.37 support level and if it fails to hold, the price could fall further to $0.30.
In a worst-case scenario, a prolonged downtrend could cause PENGU’s price to drop to $0.229.
