- Pudgy Penguins breaks out from descending wedge, signaling bullish reversal potential.
- Price targets $0.0153 after breakout, with support holding at $0.0110 amid rising volume.
- Despite bullish signals, lingering outflows and mixed indicators suggest cautious optimism.
The crypto market is turning its attention to Pudgy Penguins (PENGU) as signs of a potential recovery emerge. Technical analyst Captain Faibik recently identified a breakout on the 4-hour chart, indicating a shift in sentiment after a prolonged downtrend.
The price recently pierced a descending wedge pattern, a classic bullish reversal setup. This development has reignited optimism among traders, with price action reclaiming key resistance levels.
Breakout Signals Renewed Momentum
According to Faibik, the breakout occurred above the $0.0111 level, confirming a fresh wave of buyer interest. This resistance now acts as support, currently holding near $0.0110.
The bullish structure suggests a potential rally toward $0.0153, representing a 37.18% upside from the breakout. Strong green candles and rising volume accompany this move, reinforcing its credibility. Although minor pullbacks could test support, the broader trend favors upward momentum.
$PENGU Bullish engine is heating up again! 🔥#Crypto #PENGU #PENGUUSDT pic.twitter.com/In1J7VeYUq
— Captain Faibik 🐺 (@CryptoFaibik) May 6, 2025
Market Dynamics Still Pose Risks
Despite the recent rally, the overall picture remains complex. PENGU’s price fell sharply from $0.045 in December to near $0.01 in April. This was driven by persistent outflows reaching up to -$10 million.
Even temporary inflows in February and March failed to change the trend. Recently, outflows resumed at the end of April, suggesting lingering bearish pressure. Analysts identify the $10 million inflow mark as key resistance, while -$10 million triggers deeper declines.
Technical Indicators Show Mixed Signals
The price of $PENGU at press time sits at $0.01047, marking a 2.4% decline over the last 24 hours and a 12.84% drop in the past week.
The MACD showed a bullish crossover in April, yet its histogram now shows signs of flattening. RSI, currently at 60.25, has dropped from 68.7, indicating reduced buying pressure. Still, it remains above the neutral 50 mark, pointing to a slightly bullish bias.
