Home / Analysis / Crypto / Pudgy Penguins (PENGU) Loses Solana Memecoin Crown to TRUMP as Price Craters 22%

Pudgy Penguins (PENGU) Loses Solana Memecoin Crown to TRUMP as Price Craters 22%

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Victor Olanrewaju
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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 Loses Out in Several Areas

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 drops
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.

Sentiment around PENGU remains bearish
PENGU Weighted Sentiment | Credit: Santiment 

PENGU Price Prediction: Downturn Strengthens

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.

PENGU price analysis
PENGU/USDT 4-Hour Chart| Credit: TradingView 

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.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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