• Pudgy Penguins (PENGU) rose 22.14%, climbing above $0.045 with a $2.83 billion
• RSI nears overbought levels, suggesting possible short-term retracements despite MACD having confirmed bullish upward progress.
• Bull flag breakout and volume profile suggest additional gains until $0.0470 and $0.0585 resistance levels.

Pudgy Penguins (PENGU) recently broke above the key resistance level of $0.042. At press time, the altcoin surged 22.14%, trading at $0.04507 with strong bullish momentum. Its market cap reached $2.83 billion, nearly equal to the unlocked market cap of $2.84 billion.

Technical analysis points to sustained bullish pressure on PENGU. The Relative Strength Index (RSI) is near overbought levels and is indicating short-term correction. All the same, the Moving Average Convergence Divergence (MACD) remains above the signal line and is reiterating continued bullish movement.

Also Read: PENGU Open Interest Climbs $591 Million As Price Targets $0.038

Price Poised for Breakout Above $0.040

The chart by analyst Muro shows a breakout and retest of the downtrend line, which has been topping the price recently. The retaking is a bullish strength resurgence sign. While not a certainty, the structure is still bullish, and potential gains are towards $0.0450 to $0.0470. Buyers are gathering strength for the next move.

Pudgy Penguins approaches a key technical inflection zone. Volume profile and the Fibonacci extensions emphasize resistance in the $0.035-0.037 area as a significant barrier. Remaining above there provides the way towards potential targets such as the 2.618 Fib level at $0.0450 and 3.618 Fib at $0.0585.

The volume falls dramatically above current prices, exhibiting minimal overhead supply. Such scarcity can accelerate price discovery if bulls keep control. The bullish response on the reclamation of the trendline and the gain in volume bolsters the argument. A close above $0.040 may provide a springboard for such extensions.

Penguin Bull Flag Pattern Sparks Rally

Prominent crypto analyst Ali Martinez identified a bull flag structure on the altcoin’s chart. Price experienced a steep initial increase before ranging in a downtrending channel. The structure is typically the precursor for the bullish breakout. The current price rise above the $0.035 level confirms the breakout. 

The bull flag breakout aligns with strong fundamentals and other technical signals. It adds confidence that PENGU is poised for its next upward leg. If buyers maintain control, further price appreciation toward higher targets is likely. Market watchers are keen to see if momentum sustains.

Also Read: PENGU Price Skyrockets: Bullish Chart Pattern Points to $0.075