Pudgy Penguins (PENGU) is currently in a short-term correction from the recent upward movement, but the overall market structure remains positive. It is observed that the momentum is still positive, and the major dips are of interest rather than concern. Currently, the interest is in whether PENGU can retain support and reach the breakout point.

Pudgy Penguins Buyers Eye Support Zone

However, it should be noted that even with the pullback, the market sentiment is still positive. This was highlighted by cryptocurrency analyst CryptoPulse, who said that the current pullback is actually part of a normal pullback range and not a reversal. In relation to the analysis, the area of $0.0111 to $0.0113 is of importance for a buy opportunity.

This region corresponds with a fair value gap, where the price might find support before making another upward movement. But a decline below $0.0107 would make such a scenario less likely.

At the time of writing, PENGU is trading at $0.01199, with a trading volume of $240.51 million and a market value of $757.90 million. The token is down by 5.58% over the last 24 hours, which indicates a halt in the progression that occurred before.

PENGU Buy Signal Eyes Breakout

In addition to this optimistic scenario, Ali Martinez highlighted that the TD indicator has given a buy signal on PENGU. This indicator tends to appear when the selling momentum begins to slow down, which is a sign that a bounce could be imminent. Therefore, any significant downside could be ruled out.

Looking ahead, the important level to keep an eye on is $0.0138. A clean breakout above this resistance level may provide the first glimpse into a stronger upside breakout. Until such a breakout occurs, the price movement of PENGU is expected to be concentrated on remaining above the support levels.

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Pudgy Penguins Weekly Momentum Stays Soft

The RSI stands at 40.83, below the middle level of 50, indicating weak purchase momentum. The average RSI value is close to 39.59, indicating weak momentum. The price is close to $0.01200, significantly lower than the MA Ribbon value of $0.01714-$0.01866.

The MACD stands at -0.00349, and the signal line at -0.00271. Looking at the histogram at -0.00078, the bears are still under pressure. Despite the deceleration in the selling momentum, there is no bear cross.

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