Pudgy Penguins [PENGU], a rising contender in the cryptocurrency market, has demonstrated remarkable momentum, surging by an impressive 137% over the past fortnight. This significant rally has decisively shifted its market structure into bullish territory, capturing the attention of investors and traders alike. The cryptocurrency successfully tested the early February resistance level of $0.0135, and at the time of reporting, the $0.0108 support level appeared robust, holding PENGU’s upward trajectory.
The broader cryptocurrency market has also experienced positive movement, with Bitcoin’s [BTC] 15% climb in the last two weeks providing a favorable environment for altcoins. However, Pudgy Penguins’ exceptional performance, outstripping even Bitcoin’s gains, underscores its inherent relative strength and growing investor confidence. This bullish sentiment is further reinforced by the increasing floor price of the Pudgy Penguins Non-Fungible Tokens (NFTs), which has risen from 9.54 ETH on April 17th to 11.5 ETH at press time, indicating strong demand within its ecosystem.
Technical Analysis Suggests Potential Retracement Before Further Gains
A closer look at the 1-day chart reveals that the Pudgy Penguins token decisively broke through local resistance levels in the latter half of April, accompanied by a notable increase in trading volume that validated the strong upward movement. However, after reaching a peak of $0.0141, the bullish momentum encountered resistance, leading to a pullback. Fibonacci retracement levels suggest a potential deeper retracement, with key support levels identified at $0.0082 (61.8% retracement) and $0.0066 (78.6% retracement). These levels are anticipated to be crucial for bulls to defend and could present attractive buying opportunities upon a retest.
Despite the potential for a short-term retracement, the On-Balance Volume (OBV) has maintained an upward trend over the past month, surpassing the mid-March highs, signaling sustained demand for PENGU. The Relative Strength Index (RSI) is currently declining from overbought territory as the price retraces, indicating a natural reset period within the bullish cycle.
Also Read: PENGU Up 200% on NFT Surge: Will It Break Its All-Time High?
Liquidation Heatmap and Key Support Zones in Focus
Analysis of the 1-month liquidation heatmap reveals significant liquidation levels building up around $0.012 and $0.00966. Notably, the $0.0083 level emerges as another potential “magnetic zone,” coinciding closely with the 61.8% Fibonacci retracement level. This confluence of technical indicators suggests that the $0.0083 region could act as a strong support area.
Overall, current evidence suggests that Pudgy Penguins [PENGU] may experience further downside in the short term before potentially resuming its impressive rally. Given its relatively small market capitalization, investors should anticipate inherent volatility. Should the token exhibit a bullish reaction around the $0.0083 support level, the next targets for bulls could lie within the $0.0142 to $0.0151 price range.
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
