• PENGU retests former resistance, now acting as strong support.
• PENGU is holding above $0.027000, a critical demand zone.
• Bullish chart patterns suggest higher targets could emerge soon.
• Open interest declines, signaling reduced speculative market activity.

PENGU is gaining attention as its price structure shows resilience at a crucial level. The token is trading at $0.02901, holding just between the important $0.027000–$0.030000 support zone. This area had capped price advances earlier in January 2025 but flipped into support during July’s rally. Market observers view this level as a foundation for the next leg higher.

PENGU is down 1.91% in the past 24 hours and has slipped 8.64% over the week. Despite this, trading volume has risen sharply, reaching $282.17 million, up by 47.55% in the last 24 hours. The token’s market capitalization currently stands at $1.82 billion, underlining its presence among active mid-cap digital assets.

Strong volume supports the move, confirming buyer interest at higher prices. The recent pullback has returned the token to its newly established support, where trading activity shows signs of stabilization. The setup suggests a breakout-retest pattern, with some analysts also noting a possible cup-and-handle formation.

Also Read: Pudgy Penguins (PENGU) Price Dips 5% as Market Eyes Healthy Correction

PENGU Price Targets and Risk Levels

If PENGU maintains support above $0.027000, analysts highlight the next potential resistance zones at $0.040000 and $0.050000. The prior high near $0.060000 also stands as a milestone. Beyond this, the extended upside target now stands at $0.070000, aligning with bullish projections for the near term. A chart projection also points to this level, reinforcing momentum-driven expectations.

However, risks remain present. A decisive move below $0.027000 with strong selling pressure could negate the bullish case. Such a breakdown could expose the token to downside pressure, potentially sending the price back toward $0.020000. Market watchers are closely monitoring how the price reacts at current support before confirming any directional bias.

Market Sentiment and Open Interest

Open interest is down by 3.29% to $277.25 million. This is a sign that traders are liquidating positions, possibly taking profit from the recent upmove. Usually, these declines after sharp upmoves are signs of periods of consolidation when buyers and sellers are balancing up before the next significant move.

The OI-weighted funding rate is at 0.0052% with a slight bullish bias but largely neutral positions. Both diminished speculation and cautiously optimistic positions indicate that the market is in a consolidation move. Traders are waiting for a new catalyst that can either affirm the bullish setup or trigger a steeper retracement.

Also Read: Pudgy Penguins (PENGU) Price Analysis: Bullish Setup Targets $0.10