Once the top Solana memecoin, PENGU faces bearish pressure | Credit: Veronic Cestari
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Key Takeaways
PENGU’s market cap has dropped and is now more the top Solana-based memecoin
It loses this spot to the TRUMP token amid falling Open Interest and bearish sentiment.
Indicators, including the Supertrend, show that PENGU’s price might continue to slide.
A few weeks ago, the Pudgy Penguins (PENGU) token jumped to become the top memecoin on Solana. Its market cap surpassed established tokens like dogwifhat (WIF) and Bonk (BONK).
This happened as PENGU’s price rallied by over 400%. But today, the token has dropped four places and lost the top spot to the official TRUMP memecoin, which registered an explosive rally over the weekend with its market cap hitting $74 billion at one point.
Though TRUMP’s price has shed some of those gains, it does not appear that PENGU will reclaim the top spot.
PENGU declined as the top Solana memecoin after the price dropped by 22% in the last seven days. This decline has brought its current trading price down to $0.024.
However, PENGU’s price is not the only part of the project that has experienced a significant decline. According to Santiment, the Open Interest (OI), which was almost $250 million on Jan. 6. has fallen to $108.9 million.
OI represents the value of the total number of open positions in a contract and changes based on net open positioning. For instance, when the price rises alongside an increase in OI, it indicates that buyers are more aggressive than sellers.
However, a decrease in the OI gives sellers the upper hand. Therefore, the recent decline in PENGU’s OI indicates an increase in closed positions and a withdrawal of funds from the derivatives market.
PENGU Open Interest | Credit: Santiment
If this trend continues, PENGU’s price may decline further, making it increasingly challenging to reclaim its top spot from the TRUMP memecoin.
Furthermore, the Weighted Sentiment around the memecoin has remained negative since Dec. 19. This reading indicates that the broader perception around PENGU is bearish.
Should this trend remain the same, demand for the cryptocurrency’s value might continue to dwindle, which could also cause its price to decrease further.
On the 4-hour chart, the Supertrend indicator has turned red and is positioned above PENGU’s price, indicating a bearish trend and extended downward pressure. The Supertrend identifies whether an asset is in an uptrend or downtrend by analyzing the price action based on the prevailing trend.
The asset is in an uptrend when the price is above the indicator with the green segment displayed. However, in this case, PENGU might continue to fall, with the chart below showing that it could drop below $0.020.
On the flip side, this trend could reverse if PENGU’s price becomes oversold. The memecoin’s value could climb to the 0.618 golden pocked ratio at $0.038 in that scenario.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
