Pudgy Penguins (PENGU) Shakes Off Dip — Price Ready to Rip Higher in May

Key Takeaways

• Pudgy Penguins (PENGU) fell last week after a rejection from $0.013.
• The price regained its footing and broke out from a short-term channel.
• Can PENGU sustain its breakout and move to new highs in May?

PENGU was one of the crypto market’s most distressed assets in 2025, falling over 90% since its all-time high in January.

The fortunes turned in April when the price broke out from a long-term descending resistance trend line and surged 300%.

PENGU’s rally stalled last week, but the price has regained its footing and is gearing up for another breakout in May.

PENGU Falls After Rejection

The daily time frame PENGU analysis shows the price broke out from a descending resistance trend line on April 19.

The trend line has existed since the all-time high, so the breakout is a strong sign that the correction is over.

PENGU’s rally culminated with a high of $0.0141, reaching the $0.013 horizontal resistance area.

While the price has fallen since (red icon), it trades very close to this area, making a future breakout possible.

Technical indicators support this projected PENGU price increase. While the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) fell, neither generated any bearish divergence.

Furthermore, both indicators have started to regain their footing, and the RSI could soon cross above 50, while the MACD could reject a negative cross.

If a breakout occurs, the next closest resistance will be between $0.020 and $0.024. The 0.382 Fibonacci retracement and a horizontal resistance create this target.

What Lies Ahead?

The shorter-term six-hour chart also gives a bullish PENGU price prediction, aligning with the daily one.

Firstly, the wave count suggests that another high is likely. As predicted last week, the $0.013 resistance marked the top of wave three, which was 3.61 times longer than wave one.

If the count is accurate, PENGU has started the fifth and final wave with a target near $0.021, created by the 2.61 external retracement of the drop (black) and the 0.382 Fibonacci retracement resistance (red).

The price action shows a breakout from a short-term descending parallel channel, likely to take PENGU higher.

Finally, the RSI and MACD are trending upward, the former above 50 and the latter making a bullish cross (black circles).

The bearish scenario suggests wave four could come lower, falling to the parallel channel’s support trend line.

However, it will not invalidate the Pudgy Penguins bullish count if the coin trades inside the descending parallel channel.

Final PENGU Price Rally

The PENGU price surged in April, breaking from a long-term diagonal resistance.

While the rally hit a roadblock last week, the price of PENGU regained its footing and aims for a breakout.

If that happens, PENGU could reach new highs in May, targeting $0.021.