Pudgy Penguins Jump 10% to $0.0117 as Buyers Return and Trendline Support Holds
Pudgy Penguins rises 10% to $0.0117 as demand strengthens and trendline support holds. Market cap hits $740M while traders eye a breakout...
Quick overview
- Pudgy Penguins (PENGU) experienced a significant bounce of over 10%, reaching $0.011777 amid increased trading activity.
- With a trading volume of $183.3 million and a market cap of $740 million, PENGU has emerged as a highly traded mid-cap asset this week.
- Investor sentiment has improved, driven by brand recognition and engagement in NFT-linked gaming communities, contributing to PENGU's recent price stability.
- Technical indicators suggest that if PENGU maintains its position above key support levels, it could target higher price points in the near future.
Pudgy Penguins (PENGU) put on a show on Sunday, making a pretty big bounce – up by more over 10% to $0.011777 as the trading activity surged across all these meme token markets.
With a whopping $183.3 in trading volume over 24 hours & a market cap of $740 million, PENGU has really put itself in the spotlight as one of the most traded mid cap assets of the week.
The amount of PENGU out in circulation has now hit 62.86 billion, making it one of the bigger meme driven ecosystems out there, while still keeping a relatively tight price range going. This latest bounce up reflects a change in investor sentiment after they had a bit of a scare earlier in the week.
Market Context and Investor Flows
Things have been looking up for meme-themed assets as there is more liquidity flowing back in to the higher beta tokens out there.
People are saying that Pudgy Penguins are getting a big boost from brand recognition, crossover activity with NFTs and a lot of liquidity on the exchanges.
Some factors that I think are contributing to this bounce back:
- People are starting to get more confident in the market overall after the breadth of the crypto market picked up a bit
- There is a lot more engagement going on in NFT linked gaming communities right now
- People are again flowing in to the meme tokens after a bit of a mid week reset
Even though the overall market is still pretty volatile, the fact that PENGU is able to hold its ground above the support level is getting the short-term traders back in.
PENGU Technical Setup Strengthens Above Support
On a 2 hour chart of PENGU, you can see that the price is starting to stabilize above this rising trendline that has held up every time it took a pullback since early December. PENGU has also managed to retake the 20-EMA at $0.01123, which is a level that people were getting a bit nervous about before – and the start forming higher lows over a few sessions.
Some key resistance levels for PENGU right now are:
- $0.01282 – a zone that has been rejected a few times in late November.
- $0.01358 – an in between target if the momentum picks up a bit more
- $0.01414 – the prior high point and the upper bound of our target
The way the candlesticks are playing out has also improved, with a more positive structure as we see firmer bodies on some of the green candles – showing that the buyers are really starting to step in.
Support is still holding firm at $0.01130 and is backed up by the ascending trendline. A break down below this level would expose $0.01055 and $0.00989, but with the way things are looking right now, I think the buyers are doing a good job of defending that trend.
The RSI at 67 shows we have some strong but pretty controlled momentum and leaves a bit of room for us to keep going before we get to a point where the selling starts to get interested.
PENGU Outlook for Traders
If PENGU can hold its ground above the trendline and push past $0.01282, I think we are looking at a push up towards the mid-range targets.
With liquidity pretty high and sentiment turning more positive, as people start to get a bit more involved in some of the speculative names we see, I am pretty hopeful for PENGU.
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