The price of PENGU jumped more than 9% in the last 24 hours, returning to the market capitalization threshold of $2 billion. This rally consolidates its position as the second largest coin on Solanabehind BONK in a fierce competition for first place.
While technical indicators like ADX and ROI suggest improving momentum, they also suggest that the current trend remains unestablished. As PENGU trades near key support and resistance levels, its ability to maintain this bullish momentum will determine whether it can continue to challenge BONK or face a potential retracement.
The current trend of PENGU is not yet established
PINGOU ADX fell to 15.5 from 20.5 over the past day, signaling a weakening trend. With an ADX below 20, the market is considered to lack a strong directional trend, which often indicates consolidation or indecision.
This decline occurs while PENGU Price is attempting to form an uptrend, which suggests that while buying momentum may emerge, it is not yet strong enough to establish a clear, lasting trend.
The ADX, or Average Directional Index, measures the strength of a trend on a scale of 0 to 100. Values below 20 indicate a weak or no trend, while values above 25 suggest a stronger and more trend. defined. PENGU’s current ADX at 15.5 reflects the uncertainty surrounding its price action. This implies that the uptrend it is trying to form does not have enough support to gain momentum.
For a clear bullish breakout, ADX would need to rise above 25. Additionally, increased buying pressure would be required to confirm the emergence of a stronger trend. Until then, PENGU could remain in a consolidation phase, thus maintaining its position in the top 10 among the largest coins.
PENGU RSI rose quickly after hitting the oversold zone
PINGOU The RSI rose sharply from 28.9 to 49.8 in a single day, indicating a strong recovery from oversold conditions. This increase suggests growing buying momentum after a period of heavy selling, bringing the asset closer to a neutral zone.
This significant rise reflects a shift in market sentiment, with buyers beginning to offset the previous dominance of sellers.
The RSI, or Relative Strength Index, measures the speed and magnitude of price changes on a scale of 0 to 100. An RSI below 30 indicates oversold conditions, often signaling the potential for a rebound. On the other hand, an RSI above 70 signals overbought conditions.
With PENGU’s RSI now at 49.8, price is in a neutral, slightly bullish zone. This level suggests that further price recovery is possible, but sustained momentum will be crucial to push the RSI into bullish territory above 50. Conversely, failing to maintain momentum could lead to consolidation or a new selling pressure.
PENGU Price Prediction: Can PENGU trade above $0.4 in January?
PENGU Price is currently trading in a range, with support at $0.031 and resistance at $0.034. If the uptrend strengthens, PENGU could break above the $0.034 resistance, opening the way to a test of $0.04 and potentially $0.0439.
This decision could further intensify the competition between PENGU and BONK to become Solana’s largest coin.
However, if the uptrend fails to materialize and the $0.031 support is lost, PENGU Price could drop to $0.029.
A stronger downtrend could push the price even lower, potentially testing $0.025.
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