- Pudgy Penguins token surged over 300 percent in July and broke key resistance at $0.041, boosting bullish investor sentiment.
- PENGU is forming a strong ascending channel with steady support, showing signs of sustainable growth rather than a short-term rally.
- Traders eye a successful retest of $0.04 as support to confirm the breakout and sustain the bullish momentum in the coming weeks.
Pudgy Penguins (PENGU) has posted its strongest weekly close ever, breaking through its final major resistance and signaling renewed bullish momentum. The NFT-related token closed above the $0.041 resistance level, a milestone that analyst Rekt Capital believes could be the start of a sustainable uptrend. PENGU is currently trading at $0.041299 after climbing over 300% from July lows near $0.010.
Source: Rekt Capital
The breakout above resistance comes after a long consolidation period. PENGU previously faced steep declines between February and June, dropping from highs around $0.055 to lows near $0.004. However, the July recovery has been dramatic. The token’s price action now shows higher lows and strong buying momentum. Technical analysts suggest a successful retest of the $0.04 level as new support could further validate the bullish trend.
Technical Setup Shows Strength
TradingView data confirms that PENGU has formed an ascending channel over the past three weeks. This technical formation has guided its steady climb, with the token respecting both upper resistance and lower support levels. Moreover, the recent green candlestick formations indicate consistent demand as investors accumulate positions.
Source: TradingView
Technical indicators are still in balance. The signal line remains marginally positive at 0.000717, while the MACD histogram displays neutral readings at -0.000284. Furthermore, the RSI is currently at 50.52, indicating that the market is neither overbought nor oversold. If the upward trend persists, these neutral indicators leave space for additional gains.
Investor Sentiment Strengthens
The chart also highlights consolidation periods within the ascending channel. These pauses indicate sustainable growth instead of a short-lived speculative rally. Consequently, PENGU could maintain its upward momentum if it continues to hold above the channel’s lower trendline.
However, Rekt Capital noted that PENGU must invalidate these signals to preserve the strong bull bias. A confirmed retest of $0.04 as support could provide that validation.
