Pengu Technical Analysis: A Pause at the Resistance Following the Rise
Pengu has been drawing attention recently with a series of corporate interactions on social media. Following a tweet by Justin Sun the founder of TRON the price of the coin jumped swiftly. Later, Coinbase’s profile photo change to Pudgy Penguins NFT on its X account, and today’s use of the same theme by Trust Wallet, were among the developments triggering interest. Also, the acceptance of the spot ETF application for PENGU and the transfer of 265M tokens (approximately $6M) from the project wallet are among the other key factors influencing its price. As a result of these actions, the price of the token has approached critical levels. Now, let’s analyze the chart.
As seen on the chart on a daily timeframe, the price of the token has broken out of the downtrend with a Breakout of Structure (BOS) and then a Market Structure Breakout (MSB). The market structure’s complete upward reversal has thus been confirmed. It is clearly seen that this pattern, beginning in April, moved parabolically in July, reaching the upper border of the ascending channel and being rejected by the resistance level of $0.0330. This level is a key zone as it has historically been an area of concentrated sell pressure. If the price can break this resistance and see daily closings above it, the levels of $0.035–$0.04 and $0.047 could be the next price targets.
In case of a pullback, on the other hand, the first support level to follow will be $0.0191, which is technically a strong support as it is the zone of a Support Resistance Reversal (SR Flip). In case of deeper corrections, the levels of $0.0171 and $0.0131 will be major support levels.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, the user is responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during the transactions.
