- PENGU finds strong support around $0.0366–$0.0370 amid a recent 13.88% weekly slide.
- A bullish falling wedge and RSI divergence hint at a potential breakout.
- If momentum continues, price targets around $0.042 and $0.045 could be next.
Pudgy Penguins (PENGU), the popular meme token in the crypto space, now shows signs of a comeback. After a sharp drop in value last week, there are now fresh on-chain and technical signals suggesting a change of fortunes.
Although the broader crypto market is largely neutral, PENGU is showing signs that the token might be gearing up for a rally. The token price decreased in the previous 24 hours by nearly 6.68%, continuing a seven-day declining trend of nearly 13.88%.
Despite the declining trend, the token appears to find good support in the zone of $0.0366 and $0.0370. The support zone has been strong in the latest trading sessions, and now that is providing investors with a new wave of confidence.
PENGU is trading near $0.03792, and the trading volume is picking up momentum once again. PENGU’s trading volume in the previous 24-hour period recorded a gain of 3.72% in value to reach the figure of $791.57 million, marking increased market interest.
Also Read: PENGU Targets $0.050: Breakout Rally or Liquidity Trap Incoming?
PENGU Forms Bullish Falling Wedge Pattern
Crypto analyst Ali highlighted that the token price chart is technically forming a declining wedge, which is generally regarded as a bullish sign. The setup occurs when prices fall within a progressively narrower range, often before a breakout.
More importantly, analysts are noting a bullish divergence, a situation where the price falls but momentum indicators, including RSI, are increasing. This is the kind of setup that normally signals selling pressure is weakening, and a reversal could be near.
If the price of PENGU manages to break above the next major range of $0.039 to $0.040, then momentum may build and extend to higher levels.
The levels of $0.042 and $0.045 are now being talked about as the next targets if the token is to continue its ascent.
The levels have been turning points in the past and could also act as resistance this time, but breaking through them would support the bullish case.
PENGU Trading Volume Shows Modest Uptick
On-chain data is also showing a shift in momentum. Token cumulative spot and futures volume hit $2.26 billion, up 0.66% in a minor gain. However, open interest, the volume of money active in PENGU-related trade, dropped 9.27% to $477.92 million.
The decline may be a sign that stop-hunts are being liquidated and that bulls are awaiting clearer confirmation. OI-weighted sentiment, meanwhile, is weak but tilted positively, registering a reading of +0.0038%, as bulls slowly recover confidence in the token.
Overall, PENGU is in a critical position. After recent declines, the token is now testing a major support area and flashing technical signals that are typical of price reversals.
Activity is gaining in the market, and sentiment indicators are turning in favor of the bulls. While there are no guarantees, the token could be set up for a strong bounce and is, therefore, a token worth paying close attention to in the near term.
Also Read: Pudgy Penguins Faces Resistance: Will It Break Through and Hit $0.07?
