Solana Meme Coins are Ripping – Can PENGU and POPCAT Keep Rallying?

These tokens currently account for nearly a fifth of the aggregated market value of all meme coins.

Pudgy Penguins (PENGU) and Popcat (POPCAT) have emerged as the top-performing tokens in this category in the past months with gains that exceed 240%.

Meanwhile, other Solana native meme coins like Bonk (BONK) and Fartcoin (FARTCOIN) have also experienced similar rallies of 86% and 101% during this period, respectively.

As a result, the network’s decentralized trading volumes have surged from around $7.9 billion during the week ended on 16 March to $20.1 billion as of last week.

Solana Eyes ‘Golden Cross’

Solana (SOL) has gone up by 7.3% as higher demand for its native meme coins has resulted in higher demand for this utility token. Its trading volumes have nearly doubled in the past day amid the hype.

This uptick has pushed SOL near its 200-day exponential moving average (EMA), a key resistance that could determine what will happen next.

Now that the 21-day EMA is approaching the 200-day EMA resistance, the odds of a golden cross are as high as they have been in months.

The last time that this technical event happened, Solana nearly doubled its price in around four months. Hence, traders should keep an eye on the daily price action in the next couple of weeks as this would be one of the most bullish signals since the year started if it happens.

PENGU May Look for More Fuel to Keep Surging

Now, looking at the hourly charts of PENGU and POPCAT, the former is showing signs of exhaustion already as the Relative Strength Index (RSI) has entered overbought levels.

The price could still rally a bit more but the magnitude of these gains will likely be far lower compared to the previous waves.

An Elliott Wave analysis shows that this last leg could have been wave number five for PENGU. This does not mean that the price will decline to its previous support. It is just an indication that this uptrend could have already exhausted its resources, meaning that the market will look for further liquidity by pushing the price down until it hits a significant order block.

The two fair value gaps (FVGs) in the chart are potential landing zones for PENGU once a pullback occurs. These are attractive areas to buy that also offer the highest risk-reward ratios for traders.

Which of the two to pick for an entry? That would depend on the price action. If the price bounces strongly off any of these levels and volumes are 2x or 3x higher once that happens, that is often an indication that the market has drawn enough liquidity for its next leg up.

Since the $0.1225 level is an area of confluence where a former resistance also stands, this would be the preferred pick for most late buyers. The rally is still alive and kicking and a pullback at this point should be considered an opportunity to buy to stay with the trend.

POPCAT’s hourly chart shows a similar situation but with fewer support areas to draw from. Hence, from the two tokens, PENGU is the one with the strongest bullish structure.

The FVG in the chart is the most critical support to watch if POPCAT takes a breather at some point. This coincides with the token’s latest valid low. Hence, it is highly likely that the market will retest this area soon.