PENGU Rally Over? 5 Warning Signs the Top Might Be In

Pengu's parabolic surge has traders asking: is this the top? The meme coin's 300% pump shows exhaustion signals—just as whales start dumping.

On-chain metrics flash red

Exchange inflows spike while social volume collapses—classic distribution patterns. Retail FOMO meets institutional exit strategies.

Technical breakdown underway

Failed retest of the ATH confirms bearish divergence. The 20EMA just death-crossed the 50EMA on 4H charts. Ouch.

Liquidity pools drying up

BNB chain data shows PENGU/BNB liquidity down 42% since peak. Even degens are rotating into newer shitcoins.

Remember: in crypto, the 'greater fool theory' works until it doesn't. And when the music stops, the last bagholders always pay for the hedge funds' champagne.

Signs PENGU rally has topped out

The most notable warning sign appears on the RSI, which has shown a bearish divergence: while PENGU price pushed to new highs in late July, the RSI printed a lower high, signaling waning buying pressure. This disconnect between price and momentum often precedes local tops, especially after overextended rallies like the one just witnessed.

Moreover, the memecoin‘s price has just pulled back to the level of the previous low, rather than establishing a higher low. This effectively breaks the pattern of consistent higher lows that defined the recent uptrend.

PENGU price is now hovering just above the ascending trendline and the 20-day EMA, both of which currently act as critical support. A clean break below this confluence — especially if accompanied by a drop in RSI below 60 — could confirm a shift in trend or at least a deeper pullback.

While the broader structure remains bullish for now, caution is warranted. If support holds, PENGU price may attempt another leg up, but the weakening momentum suggests a potential breakdown in the coming sessions.