PENGU becomes the best of the same corners of Solana

The trend is bullish on PENGU with potential further gains if the positive momentum continues. However, traders remain cautious about a possible reversal. In fact, because this trend is showing the first signs of running out of breath.

PENGU RSI is retreating from overbought

PENGU’s Relative Strength Index (RSI) is currently at 60.2, down from the 70 it reached a few hours ago. This after experiencing an exit below 50 two days ago. This recent move reflects a strong increase in buying momentum, followed by a slight pullback as the token moved out of the overbought zone.

Although the RSI remains in a neutral to bullish range, the decline suggests a cooling of buying activity. This potentially tells us 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 followed by a price correction. Conversely, an RSI below 30 indicates oversold conditions and signals a potential rebound.

Currently, PENGU’s RSI is at 60.2, a fairly healthy pace that suggests further upside is still possible. However, the recent decline from overbought levels suggests that the price of PENGU may stabilize in the near term, allowing the market to absorb gains before deciding on its next direction.

The asset’s CMF is still very positive

PENGU’s Chaikin Money Flow (CMF) is currently at 0.17, down slightly from its high of 0.21 on December 25th. This follows a significant reversal of negative CMF readings between December 21 and December 23, suggesting that buying pressure has intensified significantly in recent days.

Although the CMF remains solidly positive, the slight decline suggests that the intensity of capital flows has eased, but still reflects a bull market environment.

CMF is a volume-weighted indicator that measures the accumulation or distribution of an asset over time with values ​​ranging from -1 to +1. Positive CMF readings indicate accumulation and strong buying pressure. In contrast, negative values ​​indicate ongoing distribution and sales activity.

With PENGU’s CMF at 0.17, continued positive inflow suggests that buyers remain in control. As a result, this supports the likelihood of price stability or further gains in the near future. However, a slight decline from the recent high could signal an impending consolidation.

Peng Price Prediction: Up 29.7% Ahead?

If the current uptrend continues, PENGU price could soon test $0.43. This is a key level that could pave the way for further gains.

A break of this resistance could see PENGU rise to $0.45 and even $0.50, representing a potential 29.7% upside from current levels. This would further solidify PENGU’s position as the biggest meme coin on Solana.

However, as the RSI and CMF point out, the uptrend could lose its strength. The possibilities of a future decline are getting stronger. If this happens, PENGU could test the $0.37 support level. If that doesn’t hold, the price could fall further to $0.30.

At worst, a long-term downtrend could push PENGU price down to $0.229.

Moral of the story: in the race for the top spot, there’s always a winner who gets people talking.