Despite bullish momentum, indicators show that PENGU's price may face a pushback | Credit: Veronica Cestari
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Key Takeaways
PENGU jumped 32% in 24 hours, breaking out of a descending triangle to hit $0.0068 — its highest level since March 28.
The rally stalled near a historical supply zone, with $0.0070 acting as a resistance that has previously triggered corrections.
Weighted Sentiment spiked to 1.05, suggesting overly bullish sentiment that could signal a local top and incoming retracement.
After months of downtrend and repeated rejection at key resistance levels, Pudgy Penguins’ (PENGU) price has finally broken free.
On Tuesday, April 23, PENGU printed a bullish engulfing candle on the daily chart. The breakout triggered a sharp rally, pushing the token’s price up by 32% within 24 hours, taking it to $0.0068, a level not seen since March 28.
While PENGU’s price has triggered bullish sentiment among its holders, indicators suggest the rally may be short-lived. Here is why.
PENGU Faces Big Obstacle Despite Surge
PENGU’s price fell to $0.0039 on April 9 after being stuck in a descending triangle. But today, the cryptocurrency’s value is out of that bearish pattern following notable buying pressure.
However, PENGU’s surge to $0.0068 has left it in a tricky situation as it has hit a historical supply zone. As seen below, it becomes challenging to trade higher when the token hits this level.
For instance, on March 17, PENGU bulls attempted to push the price above $0.0070, but failed. A similar thing occurred on March 28, as this rejection led to a double-digit correction.
As of this writing, the Pudgy Penguins token seems to have experienced a pushback as it attempted to rally above $0.0070. In addition, the Relative Strength Index (RSI) reading has increased to 65.39, indicating bullish momentum.
However, it is close to the overbought level amid a drop in the Chaikin Money Flow (CMF) reading. In the image above, the CMF reading has dropped below the zero signal line, indicating that buying pressure is fading.
Should the rating continue to slide, then PENGU’s price might find it challenging to retest $0.0070.
Sentiment Spikes, Hints at Local Top
Away from the technical outlook, Santiment data shows that the Weighted Sentiment around the cryptocurrency has spiked to 1.05. Weighted Sentiment shows whether the overall conversation around a coin is positive, negative, or neutral.
The market is excited when the sentiment is positive, indicating a bullish outlook. A negative reading, on the other hand, indicates fear and is mostly bearish.
However, when either ratings are extreme, it signifies a local top or bottom. For PENGU, the current reading seems extreme. As such, the price is likely to pull back after this upswing.
Regarding the short-term outlook, the daily chart shows that PENGU’s price has yet to breach a major resistance despite the rally. One indicator that reveals this is the Ichimoku Cloud.
Typically, when the cloud is below the price, it indicates support, and the price is likely to climb. However, the Ichimoku Cloud is above PENGU’s current market value in this case, signaling a notable resistance between $0.0070 and $0.0076.
If this position remains the same, the token could lose some of its recent gains. If validated, PENGU’s next move could be a drop to $0.0056 near the 0.236 pullback region.
However, if bulls return in full force, this prediction might not pass. If that were to happen, the cryptocurrency’s value could extend its rally toward $0.0086.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
