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- PENGU surged 12% to $0.030 after breaking above a falling channel.
- On-chain data shows 86% of holders are accumulating the token.
- Sustaining above key EMAs could push PENGU toward $0.047.
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Pudgy Penguins’ native token, PENGU, has shown signs of recovery after weeks of sluggish trading. The cryptocurrency surged by more than 12% today, lifting its price to $0.030. While still down 46% from its all-time high, the latest move signals that buyers are regaining control.
Technical Breakout Sparks Optimism
On the 4-hour chart, PENGU broke out of a falling channel — a pattern typically formed during extended sell-offs. A breakout from this structure often marks the beginning of a bullish reversal, suggesting selling pressure is weakening. The move was reinforced by rising trading volumes and a higher Relative Strength Index (RSI), both signs that momentum is strengthening.
Still, analysts caution that if PENGU fails to sustain this breakout, the price could slip back into consolidation, delaying any meaningful recovery.
On-Chain Data Shows Strong Accumulation
Beyond technicals, on-chain activity is adding weight to the bullish case. The Holder Accumulation Ratio has climbed to 86.14%, meaning the majority of active participants are adding to their balances. A ratio above 50% signals net accumulation; at current levels, it reflects growing conviction that the token could climb higher.
This surge in accumulation suggests that long-term investors are positioning themselves for a potential rally. If the trend continues, it could provide the fuel needed to push PENGU beyond its current resistance levels.
Key Levels to Watch
On the daily chart, PENGU is testing its 20-day and 50-day Exponential Moving Averages (EMAs). Closing above these levels would further confirm a bullish shift and could send the price toward the next resistance at $0.038. A successful breakout there may open the path toward $0.047, a potential new high.
Also Read: Pudgy Party Surges Past 750K Downloads as Analysts Predict 400% PENGU Rally
However, failure to hold above the EMAs could stall momentum, leaving the token vulnerable to another consolidation phase.
PENGU’s rebound marks its strongest showing in weeks. With technical indicators and on-chain signals aligning, Pudgy Penguins’ token appears to be in the early stages of a recovery. Whether this rally extends will depend on the token’s ability to hold above key resistance levels in the days ahead.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
