Pudgy Penguins NFTs Spark a Rally: Could This Be the Start of a Major Turnaround?

Pudgy Penguins (PENGU) has shown signs of a potential bottoming process, with technical indicators and price action suggesting a possible reversal in its recent downtrend. The TD Sequential indicator has printed a buy signal on the 3-day chart, marking the ninth candle in a sequence that often signals the end of a bearish phase. This signal, highlighted by crypto analyst Ali Martinez, indicates that selling pressure may be waning. The indicator's output is often used by traders to identify early signs of trend shifts, and in this case, it coincides with a 15% rise in PENGU over the past 24 hours and a 20% gain over seven days [3].

In addition to the TD Sequential signal, a breakout from a falling wedge pattern on the 12-hour timeframe has been noted by market analyst Sjuul. The wedge had been in place throughout August and was followed by a move above key resistance levels. This breakout, according to Sjuul, suggests the formation of a "perfect bottom," with the price now moving into the previous trading range. Analysts are now watching the $0.042 level as the next key resistance point, where a continuation of the bullish momentum could be confirmed [3].

Recent price action has also displayed smaller candle bodies and reduced volatility, which are typically seen as signs that downward momentum is losing steam. This has been supported by lower wicks on the candles, indicating increased buying interest at lower levels. These price patterns, combined with the TD Sequential and wedge breakout signals, suggest that PENGU may be forming a short-term base after weeks of decline [3].

The bullish sentiment has also been reinforced by PENGU's recent partnership with OpenSea, the largest NFT marketplace. OpenSea announced its integration with Pudgy Penguins NFTs in early September, making it the official marketplace for both Pudgy Penguins and PENGU. This development has coincided with an 18% surge in the token’s price, with the coin trading at $0.03317 at the time of reporting. Technical analysts have noted that PENGU has broken out of a bullish falling wedge pattern on the daily chart, a development that could potentially push the price toward $0.040 [4].

Despite the positive signs, some caution remains among traders. The ADX (Average Directional Index) indicator currently stands at 18.85, suggesting a weak trend. This implies that while the price has seen a sharp rise, the momentum behind it may not be strong enough to sustain a prolonged rally. However, the SuperTrend indicator has turned green, signaling that the coin is in an uptrend and that buying pressure is currently dominant [4]. Traders are also keeping a close eye on key liquidation levels identified by on-chain analytics, with the $0.02993 and $0.03405 levels showing strong bullish positioning [4].

Looking further ahead, some analysts have drawn parallels between PENGU’s price structure and the cup-and-handle pattern, which is often associated with strong breakout potential. If PENGU can reclaim and hold above the $0.045 to $0.046 neckline, it could potentially target $0.060 based on historical price patterns. Analysts such as Jesse Peralta and nobi have projected even higher price levels, with nobi suggesting that if PENGU were to match Dogecoin’s current market cap, it could trade near $0.52. While these projections are speculative, they reflect the growing confidence in PENGU’s ability to capture a significant share of the memecoin market [5].

Source: [1] Pudgy Penguins (PENGU) Price Today, News & Live Chart (https://www.forbes.com/digital-assets/assets/pudgy-penguins-pengu/) [2] Pudgy Penguins Chart, & Supply Details – PENGU Price (https://www.gemini.com/prices/pudgy-penguins) [3] PENGU Bottom In? TD Sequential and Wedge Breakout ... (https://cryptopotato.com/pengu-bottom-in-td-sequential-and-wedge-breakout-say-yes/) [4] PENGU soars 18% after OpenSea partnership: Is $0.04 next? (https://ambcrypto.com/pengu-soars-18-after-opensea-partnership-is-0-04-next/) [5] Pudgy Penguins (PENGU) Price Prediction: Analysts Eye ... (https://bravenewcoin.com/insights/pudgy-penguins-pengu-price-prediction-analysts-eye-0-10-target-after-40-day-correction-reset)