Is PENGU done? Signs the rally may have topped out

PENGU has delivered an almost 500% rally since late June, but technicals now hint at a potential shift in momentum, suggesting the uptrend may be losing steam.

Pudgy Penguins (PENGU) price has experienced parabolic rally since reversing from a bearish consolidation in late June. From the June 22 low of $0.007737, the token surged to a peak of $0.046608 on July 23, marking an explosive 500% gain in just a month.

Throughout this rally, PENGU was riding strong momentum, with RSI above 60 since late June and price action consistently riding above the 20-day EMA and forming higher highs and higher lows along a steep ascending trendline. However, early signs are emerging that PENGU rally may have topped out.

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.