Pudgy Penguins Nears Key Support Amid Bullish Pennant and 10.9% Volume Surge

Pudgy Penguins (PENGU) has formed a textbook bullish pennant pattern on the 4-hour chart, indicating the potential for a continuation of its prior uptrend. The pattern follows a 213% rally from $0.01447 to $0.04531, followed by a consolidation phase with converging trendlines. This suggests the market is preparing for a breakout in the same direction as the initial move [1]. The token is currently trading near a key support level of $0.034 after a 9.44% decline in the last 24 hours, raising concerns among traders about its immediate direction [1].

Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show mixed momentum. The RSI stands at 61.46, indicating a gradual uptick in bullish sentiment, while a bullish MACD crossover further supports the potential for a short-term recovery [1]. Increased trading volume, which rose 10.9% in the last 24 hours to $1.22 billion, adds weight to the possibility of accumulation near the support zone [1].

Analysts have identified key Fibonacci retracement levels as potential areas of interest. The $0.03649 level (0.786 Fib) is currently acting as a critical support zone [1]. A sustained move above $0.04531 could confirm the bullish pennant and project a target of $0.06188, based on the Fibonacci extension tool [1]. However, a breakdown below $0.03200 could signal a deeper correction, with lower supports at $0.02961 and $0.02238 coming into play [1].

Despite the recent volatility, some analysts remain optimistic. According to Ali Martinez, a potential breakout could target $0.110, a level that would represent a strong bullish continuation from the pattern [1]. The TD Sequential has issued a buy signal, and RSI divergence suggests the price may reverse higher after a period of consolidation [1]. Additionally, the token has broken two descending trendlines, which could indicate a shift in momentum [1].

Market participants are also eyeing major valuation milestones. A price of $0.19 would push PENGU’s market cap toward $10 billion, while a move to $1.10–$1.50 could position it within the range seen by Dogecoin at its peak [1]. However, analysts caution that the path to these levels will likely involve significant volatility, as seen in previous breakouts that faced initial resistance before advancing further [1].

Recent liquidation data shows that $4.0 million in positions were closed on perpetual contracts in the last 24 hours, with $3.1 million in longs and $955,900 in shorts liquidated [1]. This suggests that the market remains cautious despite the technical indicators pointing to a potential rebound.

Analyst Sjuul, founder of AltCryptoGems, views the current dip as an opportunity to accumulate. “With the TD Sequential signaling a potential breakout and the volume rising, now is the time to consider strategic entries,” he said [1].

As PENGU consolidates near key support levels, investors are closely watching whether it can sustain a breakout above $0.03771, which could set the stage for a move toward $0.045 and beyond [1]. The formation of the bullish pennant, combined with rising volume and mixed technical indicators, presents a compelling case for a potential rebound, though risks remain on both the upside and downside.

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[1] PENGU to Bounce Back? $0.11 Move Possible After ...

https://cryptopotato.com/pengu-to-bounce-back-0-11-move-possible-after-bullish-flag-formation/