- Pudgy Penguins (PENGU) posts strong weekly and daily gains.
- A breakout from a falling wedge pattern signals bullish momentum.
- RSI and MACD indicators confirm steady upward strength.
- Rising open interest and funding rates highlight market optimism.
Pudgy Penguins (PENGU) is reflecting a remarkable strength with a notable inclination in its value, mirroring the renewed interest in the crypto sector. The token price over the last 24 hours is up by 9.89%, and over the last week, it is also up by 25.83%.
At the press time, the token is trading at $0.03690 amid a sharp increase in trading activity. The 24-hour trading volume stands at $699.99 million, marking an 88.79% surge in the past day. The token has a market capitalization of $3.43 billion, which has also surged by 7.19%.
Breakout from Falling Wedge Formation
Crypto analyst Muro notices that on the 12-hour chart, PENGU just broke out of a descending wedge, a popular technical chart pattern known for signaling bull reversals. The wedge slowly formed, with the price movement oscillating between two downtrending lines. The breakout was validated as the token broke above the higher resistance line and maintained higher levels.
After that, PENGU climbed up to $0.03688, backed by high-powered bullish candles. The analysts are calling for a stop-loss around $0.03356 and a target at $0.04166, with a promising risk-to-reward ratio. The token is now consolidating above the breakout region and may retest support again before continuing upward movement.
Also Read: PENGU Breakout Signals: Analysts Eye $0.10 Target On Strong Market Activity
Technical Indicators Support the Trend
Momentum indicators also provide a bullish outlook. The Relative Strength Index (RSI) currently stands at 60.06, above the neutral line but below overbought territory. This indicates buyers are gaining traction without signs of excessive pressure.
Similarly, the Moving Average Convergence Divergence (MACD) line sits at 0.00513, above the signal line at 0.00354, reflecting a bullish crossover. The histogram also remains positive, confirming consistent upward momentum. Together, these signals highlight the possibility of continued price expansion as long as buying interest remains firm.
Market Participation Expands with Open Interest
Coinglass data reveal that open interest has risen by 20.19% to $452.81 million, showing strong inflows from traders positioning themselves for potential gains. This increase reflects expanding participation and suggests that fresh capital is actively entering the market.
Conversely, the OI-weighted funding rate stands at 0.0123%, meaning long positions are paying a premium to stay active. While this dynamic signals optimism and confidence, it also comes with the risk of sharp corrections if the market becomes overcrowded.
Also Read: Pudgy Penguins Break Falling Wedge, Eyeing Rally Toward $0.075