PENGU Drops 10%, Risks Losing Market Cap Position to BONK

PENGU price has dropped roughly 10% in the last 24 hours after becoming Solana’s biggest meme coin. Despite its recent popularity, the asset’s momentum has slowed, with technical indicators suggesting potential consolidation or further downside.

The Relative Strength Index (RSI) has fallen sharply from 70 to 52.3, indicating reduced buying pressure. If PENGU’s hype reignites, however, it could regain upward momentum and test key resistance levels.

PENGU RSI Is Going Down Fast

The Relative Strength Index (RSI) for PENGU is currently at 52.3, a significant drop from yesterday’s overbought level of 70. RSI is a widely used momentum indicator that measures the speed and magnitude of price changes on a scale from 0 to 100.

Values above 70 typically indicate overbought conditions, suggesting a potential for a pullback, while values below 30 signal oversold conditions, often pointing to a possible recovery. An RSI around 50 indicates neutral momentum, where buying and selling pressures are relatively balanced.

PENGU RSI. Source: TradingView.

With PENGU’s RSI now at 52.3, the indicator suggests a period of consolidation in the short term. This level reflects reduced buying activity compared to recent highs but still maintains a slightly bullish bias. If the RSI holds steady or moves higher, it could signal a resumption of upward momentum.

Conversely, a further drop below 50 might indicate a waning bullish sentiment, potentially leading to additional price consolidation or minor declines. If that happens, PENGU could be surpassed by BONK as Solana’s biggest meme coin.