PENGU Token Shows Signs of Short-Term Recovery Amid Key Technical Signals

Pudgy Penguins’ native token, PENGU, is showing early signs of a potential rebound after a sharp decline over the past week, with technical indicators suggesting a short-term recovery may be in the works. The token, which has traded as low as $0.03675 in recent sessions, has found support at the lower boundary of a descending channel—a level that has previously acted as a key reversal point. Price action over the last 24 hours has stabilized in this zone, and momentum indicators are beginning to reflect a shift in sentiment [1].

A notable development is the emergence of a TD Sequential "9" buy signal, a formation often associated with trend exhaustion or local bottoms. This signal coincided with PENGU hitting the channel’s lower boundary, where it has historically found buying interest. The price has also respected the setup trendline, reinforcing the idea that the downtrend may be losing steam. Analysts have highlighted the convergence of the TD Sequential signal with both horizontal and dynamic support levels as a sign that the token could soon see a reversal in direction [1].

Bullish divergence on the Relative Strength Index (RSI) further supports the potential for a price rebound. While the price has made lower lows, the RSI has formed higher lows, indicating weakening bearish momentum. This divergence is often a precursor to a reversal and has historically coincided with local bottoms when supported by key chart structure. The RSI has now turned upward, aligning with the price’s rebound from the $0.03675 zone [1].

If PENGU maintains its current support level and continues to gain strength, the next immediate target is $0.04056, a prior resistance zone that has previously rejected price advances. A successful break above this level could set the stage for a retest of $0.04300 and beyond, depending on how buyers respond to the renewed momentum. Traders are watching closely for signs that the bullish pattern will hold, with many viewing this as a potential turning point in PENGU’s short-term trajectory [1].

The technical setup includes a combination of TD Sequential signals, RSI divergence, and channel support, all of which suggest that PENGU may be entering a phase of consolidation followed by a possible upward move. While no immediate reversal is guaranteed, the alignment of these indicators points to a scenario worth monitoring, particularly as the market transitions into a new trading session. The next 48 hours will be critical in determining whether PENGU can sustain its rebound and move higher toward key resistance levels [1].

Source: [1] Multiple Indicators Show PENGU Price Is Ready to Take Off Again (https://captainaltcoin.com/multiple-indicators-show-pengu-price-is-ready-to-take-off-again/)