Pudgy Penguins [PENGU] Surges 230% in April After 91% Q1 Loss

Pudgy Penguins [PENGU] experienced a significant recovery in April, surging by 230% from its yearly low of $0.0038. This remarkable rally followed a substantial decline in the first quarter, where the memecoin lost 91% of its value, dropping from $0.046 to $0.003. The recovery raised questions about the sustainability of the uptrend and the potential for further gains.

For swing traders who bought PENGU at its April lows, the 230% gains presented an opportunity for profit-taking. The daily Relative Strength Index (RSI) entered the overbought zone, indicating a possible cool-off or retracement. Key support levels and potential buying opportunities were identified above $0.010, where the price imbalance and fair value gap (FVG) could provide stability. The $0.009-$0.013 zone, which was significant in February, could see a similar formation if the uptrend cools off.

A sustained upward momentum would be indicated by the On Balance Volume (OBV) surging above the February-April resistance level. However, if the OBV is rejected at this resistance, PENGU could slide back to the FVG zone. Conversely, if PENGU climbs above $0.013, potentially driven by a surge in Bitcoin (BTC) beyond $100k, the next bull target would be $0.017.

From an on-chain perspective, the recent upswing in PENGU has been strong and sustainable. The social volume hit a new monthly high, and the overall weighted sentiment reached record positive levels. These indicators suggested that PENGU has massive market interest and that speculators are bullish on its price prospects. The on-chain data revealed that the rally is still strong, and the price chart indicated that the uptrend could be extended if the OBV expands. However, a price reversal or cool-off could be likely due to the overbought condition on the daily RSI.