Key Takeaways
- PENGU’s price has pulled back after breaking out of a descending channel on the daily chart.
- On-chain data from Santiment indicates a rise in social volume and weighted sentiment.
- PENGU may target $0.020 as long as the AO and BBP hold above the zero signal line.
PENGU, the native cryptocurrency developed by the Pudgy Penguins team, has climbed 42% over the past week, briefly touching $0.015 before easing off slightly.
While the price has dipped, there’s little sign of a major correction on the horizon.
For now, it looks more like a breather than a reversal, with the rally potentially picking up again soon.
PENGU Takes a Break
On the daily chart, PENGU’s price climbed to $0.015 after it broke out of a descending channel. Between May 22 and June 26, the token’s value slid by nearly 40%.
But after buying pressure increased during the last week of last month, the trend changed. As seen below, PENGU posted four consecutive green candlesticks to hit the milestone.
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While there has been a red candlestick of late, the Chaikin Money Flow (CMF) indicates that a rebound is close. As of this writing, the CMF reading stands at 0.16, indicating that the buying pressure around the token has increased.
If sustained, this could drive PENGU’s price above the upper-level resistance at $0.015. But that will only be the case if bulls defend the support near $0.0921 and $0.011.
Sentiment Bullish
Beyond the technical outlook, on-chain data from Santiment shows that the social volume around PENGU has increased. This increase indicates a rising search for cryptocurrency.
If sustained, this could drive higher demand for it. Furthermore, sentiment around the cryptocurrency also shows more positive comments around the token than bearish remarks.
If social volume, dominance, and weighted sentiment increase, PENGU’s price might defy undergoing another correction. Instead, it might bounce off the recent retracement and trade higher.
PENGU Price Analysis: Charts Show Weak Resistance
Analysis of the 4-hour chart also presents a bullish outlook. As seen below, the Awesome Oscillator (AO) is in the positive region, indicating bullish momentum.
This indicates bullish momentum around the altcoin. If this trend continues, PENGU’s price might break the resistance at $0.016.
For that to happen, the Bull Bear Power (BBP) has to remain positive. As seen below, the BBP has refrained from trading below the zero signal line, indicating that bulls are in control.
Should this remain the same, PENGU’s price might break out to $0.020. In a highly bullish scenario, PENGU might rise toward $0.025.
On the flip side, if bears take control and bulls step back, this prediction might not happen. If that happens, selling pressure might increase, and this could drag the price down to $0.010.
Should profit-taking intensify, PENGU’s price might see a decline to $0.077.
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.
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