There is early evidence for a possible short-term bounce in PENGU as many technical indicators show bearish momentum has died down close to some major support levels.
PENGU is a meme coin that has experienced significant volatility due to the poor performance of the cryptocurrency sector overall.
However, the recently dropped prices of the PENGU coin and the technical indicators suggest that sellers could be losing control of the selling price. At press time, the coin is trading at $0.007505 with a decline of 3.3% over the past 24 hours.
Chart Signals Oversold Conditions
As per the daily trading graph of the PENGU coin from TradingView, the coin is trading very close to the lower Bollyband which is a zone that is often identified as oversold price action and suggests that there may be a bounce off the extremely low prices of the coin over the short term.
Additionally, the coin is still below the 20-day SMA at approximately $0.0096, which is continuing to act as the most immediate resistance to the price of the coin on the downside.
Lastly, the OBV (On-Balance Volume) indicator for the PENGU coin has been trending lower, which is an indication that the funds are not presently investing in the coin or any other cryptocurrency, for that matter.
This weak volume profile gives rise to concerns about how much longer selling could continue and likewise raises the notion that selling is beginning to run out of steam rather than accelerating.
Also Read: OpenSea Launches SBTs for Pudgy Penguins as PENGU Targets $0.0133 Recovery
TD Sequential Buy Signals Point to a Relief Surge
Crypto analyst Ali Charts on X post indicates that the TD sequential has printed multiple buy signals on the 12-hour chart, historically marking the end of bullish trends or trend exhaustion, and may signal the start of a new trend or reversals.
This is usually after a period of sustained decline, therefore the probability of a technical rebound toward the $0.0098 to $0.010 increases.
In conclusion, PENGU seems to be positioned for a possible short-term rebound due to being oversold and the presence of buy signals for all of the TD Sequential indicators.
A continuation of this upward movement will likely be dependent upon stronger-than-average volume and an eventual definitive breaking above resistance at $0.0096.
Also Read: PENGU Price Holds $0.0116, Signals Possible Recovery Toward $0.0136
