Pudgy Penguins' Bull Run Mirrors 2020 DeFi Surge as $0.026 Target Looms

Pudgy Penguins (PENGU) has surged in recent trading sessions, driven by a combination of on-chain accumulation, technical strength, and growing market optimism. The token broke above a key falling wedge pattern, with analysts and traders eyeing a $0.026 price target as the next critical resistance level. This development has rekindled interest in the asset, which is now trading at $0.02139, up 1.4% in the last 24 hours, according to a Brave New Coin report.

On-chain data reveals renewed smart money inflows, with top wallets accumulating over 2.16 million PENGU in the past week alone. This activity, led by high-net-worth investors and institutions, aligns with the token's recent technical breakout from a cup-and-handle formation—a classic bullish continuation pattern. The neckline breakout around $0.035 to $0.038 has been validated by expanding trading volume, signaling that buyers are regaining control, as the Brave New Coin report also notes. Analysts from ShangoTrades and noms_online highlight that the pattern's depth suggests potential price targets near $0.060 and $0.075 if momentum persists.

Technical indicators further reinforce the bullish case. A double-bottom reversal and clean consolidation between $0.013 and $0.018 have paved the way for the recent upward move. The Relative Strength Index (RSI) and volume expansion confirm strengthening momentum, while Fibonacci projections point to $0.0305 and $0.0447 as next-tier targets, according to an AMBCrypto analysis. Additionally, the AMBCrypto piece noted exchange outflows of $863K in late October, suggesting reduced sell pressure as holders move tokens off exchanges to accumulate long-term positions.

Market sentiment is bolstered by off-chain factors, including the Kung Fu Panda collaboration and robust community engagement led by Pudgy Penguins' founder, Luca Netz. Social media activity and network leadership have amplified visibility, attracting both retail and institutional investors. Brave New Coin data shows PENGU's market cap now exceeds $1.34 billion, with daily trading volume surpassing $111 million—a sign of growing liquidity and adoption.

However, risks remain. Sustaining the current rally will require PENGU to hold above $0.018 to $0.020 support levels. A failure to maintain this range could trigger a pullback, while a breakout above $0.028 to $0.032 would likely accelerate the bullish trajectory. Analysts also warn—echoing points from the AMBCrypto analysis—that while the $0.026 target is within reach, confirmation of a multi-week expansion phase depends on consistent volume and institutional participation.

For now, PENGU's trajectory mirrors early-stage DeFi tokens in 2020, with a confluence of technical, on-chain, and narrative-driven factors creating a favorable setup. As the market prepares for potential follow-through, traders will closely monitor $0.025 as near-term resistance and $0.018 as a critical support level.