- The 4-hour chart shows $PENGU struggling at the 0.0469 USDT resistance, with bearish momentum driving prices toward the 0.0296 USDT support zone.
- EMAs on the 30-minute chart confirm a bearish trend, as shorter EMAs remain below longer EMAs, signaling continued selling pressure.
- Analysts highlight the importance of holding the 0.0296 USDT support, as a breakdown could lead to further corrections, while a breakout above 0.037 USDT may trigger a bullish reversal.
The Pudgy Penguins’ token ($PENGU), was originally launched on Ethereum and recently expanded to Solana, but recent technical analysis shows that it’s facing bearish sentiment. Despite its cutesy branding, this altcoin is a notable player in the market, and its performance could be a sign of things to come for the rest of the market.
Key Resistance Zones and Bearish Breakout
Technical indicators reveal that $PENGU has been following a descending trendline, which is a short-term bearish signal.
The key resistance level around 0.0469 USDT has seen multiple rejections, suggesting strong seller control. On the downside, the 0.0296 USDT support zone acts as a crucial buffer. A breakdown below this level could accelerate further losses.
The current price is near to 0.0345 USDT, consolidating after recent dips, but the descending triangle pattern suggests the bearish trend will continue.
30-Minute and Daily Chart Insights: Moving Averages and Trendlines
On the 30-minute chart, exponential moving averages (EMAs) confirm the bearish narrative. The 20 and 50 EMAs are below the longer 100 and 200 EMAs, meaning consistent selling pressure. Short-lived recoveries near the 0.0358 USDT resistance have been met with rejection, offering short-trade opportunities.
The daily chart reinforces this trend, as recent long-wick candles show selling pressure at higher levels. The price range between 0.0375 USDT and 0.0313 USDT suggests consolidation, with volume spikes hinting at accumulation or distribution phases.
What’s Next for PENGU?
The Relative Strength Index (RSI) and MACD on the 30-minute chart display a cautious recovery, with the RSI getting close to neutral levels. However, analysts note that the broader trend will stay bearish unless $PENGU gets back above 0.037 USDT.
Read also: PENGU Flips BONK, Becomes Solana’s Largest Meme Coin
Thereafter, a breakout above 0.046 USDT would be a bullish reversal, but if it can’t hold support at 0.0296 USDT, it could drop to a 0.020 USDT correction.
PENGU’s recent market performance shows how important it is to watch key resistance and support levels. Traders should look for a breakout above 0.037 USDT or be ready for a drop if support levels fail.
With its growing Solana community and NFT ecosystem, the long-term outlook depends on broader market sentiment and technical triggers.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
