Pudgy Penguins Price Tests Key Resistance Level

Pudgy Penguins (PENGU), a popular cryptocurrency, has recently garnered significant attention as its price approaches a critical resistance level following a robust upward trend. This development has caught the eye of traders and analysts alike, who are closely monitoring the token's performance.

Crypto expert Sjuul from AltCryptoGems has highlighted a pivotal area on the PENGU chart that could determine the token's next price movement. The chart indicates that PENGU is pushing against a horizontal resistance zone, which aligns with previous highs. This zone, often referred to as the neckline, is a crucial level that could either halt the rally or, if broken with sufficient momentum, pave the way for further gains.

Sjuul has advised caution, noting that while the overall setup remains bullish, this resistance zone presents a potential turning point. Without substantial buying volume, the uptrend could face a stall, at least in the short term. The chart pattern of Pudgy Penguins exhibits a rounded bottom followed by a downward-sloping consolidation. The price has already broken out of a handle-like channel and is now testing the next resistance level. If this level holds, traders may anticipate a pullback or retest of previous support zones. Conversely, if the price breaks above and confirms the move with a retest, the pattern suggests a continuation of the upward trend. Targets are typically calculated by projecting the depth of the rounded base from the breakout point.

The overall trend for PENGU remains upward, supported by higher lows and recent breakout strength. Momentum indicators have not shown significant signs of exhaustion, although many traders will look for volume to confirm any move through resistance. With the structure still intact, the focus is on whether PENGU can push beyond this resistance level. A confirmed break could reinforce the bullish setup, while rejection may bring short-term pressure.