Pudgy Penguins (PENGU) Rallies 12%: Can Bulls Hold the Reins?

• Pudgy Penguins is trading at $0.011 after a 12% rally.
• PENGU’s daily trading volume has jumped by over 47%.

With the 2.39% uptick in the crypto market cap, some of the major assets are waving the green flag, attempting a recovery from the bear hold. The largest assets, like Bitcoin (BTC) and Ethereum (ETH), are trading at around $87.5K and $2.9K, respectively. Meanwhile, Pudgy Penguins (PENGU) has registered a 12.26% gain in the last 24 hours. 

The asset has tested and broken the crucial resistance between $0.01022 and $0.01148 zones and climbed to its daily high at around $0.01154 from a bottom level of $0.01016. At press time, Pudgy Penguins traded at $0.01142, with a market cap of $718.32 million. Besides, the 24-hour trading volume is up by over 47.55%, reaching $181.39 million. 

Moreover, the Ali chart shows PENGU’s price and RSI over several months. Currently, after the price peaking around June–July, it has been in a steady downtrend. Significantly, the RSI has been forming a descending trendline. When it previously broke a similar trendline in late June, the price surged roughly 370%. 

Where Is Pudgy Penguins’ Price Heading Next?

The technical analysis of Pudgy Penguins reports that the Moving Average Convergence Divergence (MACD) line and the signal line sit below the zero line. It shows that the bearish momentum dominates, and the asset is trading in a weak phase. 

PENGU chart (Source: TradingView)

In addition, PENGU’s Chaikin Money Flow (CMF) indicator at 0.12 implies that the money is flowing into the asset, with buying pressure. While the value is not extremely strong, it reflects a favourable accumulation trend rather than distribution. 

Pudgy Penguins’ daily Relative Strength Index (RSI) is positioned at 57.40, indicating a neutral to slightly bullish sentiment. Notably, the asset is neither overbought nor oversold. Furthermore, the Bull-Bear Power (BBP) reading of PENGU at 0.000660 suggests the bulls have a slight dominance. As the value is slightly positive, there is a bullish bias, but the strength is weak.

The current downtrend of Pudgy Penguins might push the price into its support range at around $0.01132. With the emergence of the death cross, the continued bearish correction could send the price below the $0.01122 range. If the PENGU bulls awaken, the price could rise toward the nearby resistance level at $0.01152. Upon the upside pressure gaining more traction, it triggers the formation of a golden cross, leading the price above $0.01162.

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