Key Takeaways
- PENGU cryptocurrency is holding support and gathering strength despite recently suffering a pullback.
- Over 563,000 holders and the rising demand show that community backing is strong.
- Analysts are eyeing $0.045 as the next resistance, with targets up to $0.15.
Pudgy Penguins (PENGU) price has been up and down lately. After rallying by more than 500% in just over a month, the token pulled back and initially spooked traders. However, despite the drop, the charts and on-chain indicators show that a rebound may be in sight.
Bullish Signals Hint at Possible PENGU Price Reversal
After peaking at $0.046 on July 23, PENGU has slipped to around $0.038. While that is a significant pullback, it is still well above its June low of $0.0077. More importantly, several indicators are showing that the dip might be temporary.
According to insights from Ali Martinez, one of the most interesting of these is the TD Sequential. For context, the TD (or Tom Demark) Sequential indicator is a technical tool used to identify trend exhaustion.
In other news, this indicator has just flashed a buy signal. This indicates that downward pressure could be easing. While this happens, the Relative Strength Index (RSI) has formed a bullish divergence.
While the price dipped, the RSI started climbing. This suggests that sellers may be losing strength, and buyers are stepping in.
While this is encouraging, analyst Cihan recently pointed out a possible risk for PENGU. According to a recent post on X, the analyst noted that a likely scenario for the memecoin could drop to 0.026. This could be seen before a massive liftoff towards the 0.080 target.
Trader Wonnie, on the other hand, believes PENGU is headed for a $2.5 billion market cap by year-end. This is an encouraging liftoff considering its current $2.35 billion market cap.
PENGU Price Holds Trendline Support
Another factor supporting a rebound is the trendline that has supported PENGU’s recent rally so far. This setup trendline has remained intact since June and continues to act as a reliable floor.
The token also trades at the lower boundary of a descending price channel. Historically, this zone has triggered buying interest and helped drive prices higher. As long as PENGU holds this zone, traders expect a bounce.
Immediate resistance lies at $0.040, followed by $0.042. A break above these levels could open a path toward $0.045 in the short term.
Despite the bullish technical signals, not all signs show that the ride towards the upside will be easy. The recent rally showed early signs of exhaustion before the pullback began.
In particular, a bearish RSI divergence formed just before the price peaked. While PENGU made higher highs, the RSI printed lower highs. It is historically a classic sign that bullish strength is fading.
The price has also returned to a previous low instead of forming a higher low. This breaks the typical uptrend pattern. A clean break below the 20-day Exponential Moving Average (EMA) and the trendline could trigger a harsh correction.
Strong Community and Network Activity Support Growth
Technical indicators only tell part of the story. PENGU’s community growth and user engagement continue to be worth mentioning, and they are helping to support long-term optimism.
As of late July, PENGU has over 563,000 holders and more than 20,000 active addresses daily. This shows a great rising demand, even in the face of recent price weakness.
Niels, co-founder of TedLabs, recently compared PENGU’s rise to Dogecoin’s previous cycle. On X, they wrote, “Is $PENGU the $DOGE of this cycle?”
If PENGU rebounds from its current support, its short-term resistance is $0.040. The breakout level to monitor is $0.045. If bullish momentum holds, the long-term target could reach $0.15 by year-end.
Leave a comment