The price of Pudgy Penguins (PENGU) has skyrocketed over 9% in the past 24 hours, accompanied by a 150% surge in trading volume, reaching $907 million. Now the second-largest Solana meme coin after BONK, PENGU has attracted significant attention as its market capitalization climbs to $2 billion.
Despite a recent spike in the Relative Strength Index (RSI) and bullish momentum reflected in the Directional Movement Index (DMI), trend strength remains moderate, signaling cautious optimism among traders. The altcoin approaches a critical resistance level at $0.043, with potential for further gains or a sharp correction depending on whether the current momentum sustains or reverses.
PENGU RSI Rises but Stays in Neutral Zone
PENGU’s RSI currently sits at 51, reflecting a slight dip from 57 yesterday after a rapid rebound from 35 in less than a day. This movement suggests that while buying pressure has eased slightly, the RSI remains in a neutral zone.
The swift recovery from oversold levels indicates a recent rebound phase, but stabilization around 51 hints at a market pause as traders assess PENGU’s next price direction.
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The RSI is a momentum oscillator measuring the speed and magnitude of price movements on a scale of 0–100. Readings above 70 suggest overbought conditions (often signaling a potential correction), while readings below 30 indicate oversold conditions (implying a possible price recovery).
With PENGU’s RSI at 51, the indicator shows no strong bullish or bearish momentum, reflecting market uncertainty. In the short term, this neutral RSI suggests PENGU’s price may consolidate unless shifting buy/sell pressure drives clearer momentum.
PENGU’s Trend Strength Weakens
PENGU’s DMI chart shows its Average Directional Index (ADX) at 20.3, slightly below the 25 recorded a day earlier, indicating weakening trend strength. This ADX decline suggests that despite recent momentum, the market is entering a phase of reduced directional strength.
With the +DI (Directional Indicator) at 20.7 and the -DI at 16.1, the chart reflects a bullish bias. Buy pressure remains stronger than sell pressure, albeit at a moderate intensity.
The ADX measures trend strength on a 0–100 scale, regardless of direction. Values above 25 indicate a strong trend, while readings below 20 (like PENGU’s current 20.3) signal a weak or absent trend. The slightly higher +DI versus -DI suggests lingering bullish momentum, but the declining ADX highlights a lack of strong underlying force.
Short-term, PENGU’s price may face limited volatility unless the ADX rises again to confirm a stronger trend or directional indicators signal a decisive shift in buy/sell pressure.
PENGU Price Prediction: Will It Hit $0.05 by January?
PENGU’s price has risen over 9% in the past 24 hours, pushing its market cap to $2 billion and cementing its position among Solana’s top meme coins. If this upward trend strengthens, PENGU could soon test the $0.043 resistance level.
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Breaking this level may open opportunities for further gains. With targets at $0.045 and $0.05, PENGU could approach or surpass its previous all-time high, potentially overtaking BONK’s market cap again.
However, if the trend reverses and bearish momentum dominates, PENGU’s price could face a sharp correction. Key support lies at $0.025—a critical level to hold to prevent further declines.
FAQ
Q1: What factors are driving PENGU’s price surge?
A1: The rally is fueled by increased trading volume (up 150%), bullish market sentiment, and growing interest in Solana-based meme coins.
Q2: Is PENGU overbought right now?
A2: With an RSI of 51, PENGU is in neutral territory, suggesting it’s neither overbought nor oversold.
Q3: What’s the long-term outlook for PENGU?
A3: If it breaks the $0.043 resistance, PENGU could target $0.05. However, failure to sustain momentum may lead to a pullback toward $0.025 support.
Disclaimer: This content is for informational purposes only. Readers should conduct independent research before making financial decisions.