Pudgy Penguins (PENGU) Rallies Off All-Time Low — Flipping 67-Day Resistance

Key Takeaways

• Pudgy Penguins (PENGU) has fallen 78% since launch.
• The Pudgy Penguins price reached its all-time low on March 11.
• How long will the PENGU downward movement continue?
• Interested in buying or selling PUDGY PENGUINS (PENGU)? Read our review of the best exchanges to buy and sell PUDGY PENGUINS (PENGU).

The Pudgy Penguins airdrop was extremely successful, causing PENGU to debut in the top 70 largest cryptocurrencies based on market capitalization.

At the time, Pudgy Penguin holders received roughly $60,000 PENGU for each NFT in their collection.

However, the PENGU price has fallen sharply since its launch, and the same airdrop is now worth roughly $12,000.

The Pudgy Penguins NFT floor price has also crashed from its all-time high of 27 ETH to 9.18.

While PENGU fell to a new all-time low on March 11, it has bounced since, breaking out from a key resistance trend line. With that in mind, let’s analyze the price action and see if this increase will continue.

PENGU Reaches All-Time Low

The PENGU price has fallen under a descending resistance trend line since its all-time high of $0.046 on Jan. 6. The decline culminated with a new all-time low of $0.0050 on March 11.

The PENGU price bounced afterward, breaking from the resistance trend line on March 14.

However, PENGU trades below the $0.007 horizontal resistance area. The PENGU price needs to break out and create a higher high. Rather, PENGU still trades close to its breakout level.

A successful breakout would take the price to the next horizontal resistance at $0.00105.

Technical indicators show bullish signs. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences, a sign often preceding bullish trend reversals.

However, it is worth mentioning that the divergences have developed since February and have not led to anything significant. So, the daily time frame price action and indicator readings do not confirm the trend’s direction.

Will PENGU Bounce?

Similarly to the price action, the wave count does not confirm the direction of PENGU’s trend. However, it leans bullish, suggesting an upward movement is slightly more likely.

PENGU has completed a five-wave downward movement (red) with an extended third wave. The hesitation comes from the fact that wave five may extend further, taking PENGU to new lows.

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Nevertheless, the primary scenario is a completed five-wave decline. If so, PENGU has started an A-B-C structure, taking it to the $0.0105 horizontal resistance area. Since the long-term trend is bearish, the PENGU price will likely fall afterward.

Alternatively, if wave five extends, the PENGU price could reach a new all-time low at $0.0037. The 1.61 external Fibonacci retracement of the recent upward movement creates this target.

Critical Week Ahead

The PENGU price is at a critical juncture since it has cleared its main diagonal resistance but is trading below the main horizontal resistance area. While the price action is undetermined, the wave count leans bullish.

The future trend will depend on whether PENGU breaks out above its horizontal resistance or falls under its descending resistance trend line instead.