Pudgy Penguin (PENGU) Tests Key $0.035 Support Level After Historic 280% Rally

Pudgy Penguin (PENGU) has reentered the spotlight as traders observe its price hovering near a historically significant support level. According to crypto analyst Ali Martinez, the token’s proximity to its 10-day simple moving average (SMA) at $0.035 has historically triggered upward momentum. Martinez noted in a post on X (formerly Twitter) that every previous touch of this SMA level has acted as a catalyst for price surges, suggesting it could serve as a “buy-the-dip” opportunity once more [1].

The 10-day SMA’s role as a technical trigger was evident in mid-June, when PENGU’s price reclaimed this level on June 26, sparking a rapid rally from $0.012 to $0.046 by mid-July—a 280% gain in weeks. However, the token has since entered a consolidation phase, with smaller price movements and hesitation near previous highs. Recent data shows PENGU retreating to $0.0386, a level just above the critical $0.035 SMA threshold. Analysts are monitoring whether buying interest will reemerge, mirroring past patterns.

Martinez’s analysis highlights the recurring nature of this support. PENGU has tested the $0.035 level three times since June—on June 26, July 9, and July 21—each time bouncing sharply higher. If the pattern repeats, the next resistance targets are projected at $0.043–$0.046. A sustained breakout could extend gains to $0.075 or $0.097, contingent on renewed momentum [1]. Conversely, a breakdown below $0.035 could expose the token to further declines.

Support between $0.035 and $0.0317 is critical for PENGU’s short-term structure. A failure to hold this range might push the price toward $0.023, a key Fibonacci retracement level from earlier swings. Volume patterns will be crucial in validating any rebound: a weak bounce without strong buying pressure could signal a false signal, while robust volume might replicate June’s success [1].

The analyst’s forecast underscores the importance of historical price behavior in guiding expectations. While past performance does not guarantee future results, the recurring dynamics around the 10-day SMA provide a framework for traders to assess risk and potential. Investors are advised to remain cautious, as market sentiment and external factors could disrupt the anticipated trajectory.

Source: [1] [Analyst Says Pudgy Penguin (PENGU) Price Could Rally Again – Here’s Why] [https://coinmarketcap.com/community/articles/6883ffc63ff24b03a300a70f/]