Date: Fri, Jan 24, 2025, 07:07 AM GMT
The Ethereum-based NFT project Pudgy Penguins, which recently launched its $PENGU token last month, has faced significant selling pressure. Over the past 30 days, $PENGU has experienced a correction of over 27%, reflecting the challenges of maintaining momentum.
After a month of bearish pressure, $PENGU’s price has fallen to a low of $0.02545. However, a potential reversal pattern—a falling wedge—is providing hope for a bullish recovery.
Source: Coinmarketcap
Falling Wedge Setup
Following its listing last month, $PENGU initially made an impressive move, reaching a high of $0.047 on January 6th. This rally was short-lived, as the token entered a correction phase, forming a falling wedge pattern, which is often a precursor to bullish reversals.
Pudgy Penguins (PENGU) 4H Chart/Coinsprobe (Source: Tradingview)
Currently trading at $0.02545, $PENGU is nearing the upper resistance of the falling wedge pattern. The price has found strong support around the $0.023 level, aligning with the wedge’s lower boundary. This makes the current price action critical, as any breakout above the wedge’s upper resistance could trigger a notable rally.
Technical Indicators
The price is currently trading above the 30-day Moving Average (30D MA), a sign of short-term bullish momentum. The MACD (Moving Average Convergence Divergence) indicator is also showing signs of improvement, with the MACD line approaching a bullish crossover, signaling a potential momentum shift.
A breakout from the falling wedge with the confirmation above its near resistance of $0.02670 could confirm the breakout, which may lead $PENGU to the next resistance levels of $0.036 and $0.047—an impressive 83% increase from the current price.
However, if $PENGU fails to break out and instead breaks down, the price could revisit the $0.023 support level, which is the lower boundary of the wedge.
Final Thoughts
Pudgy Penguins’ $PENGU token is at a critical juncture. A breakout from the falling wedge could spark significant gains, while a breakdown may test lower support levels. Traders should closely monitor price movements near the wedge’s resistance for confirmation of the next trend.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
