• Pudgy Penguins (PENGU) has gained 15.04% in 24 hours and 9.51% weekly.
• The price breakout above a falling wedge signals bullish potential.
• RSI shows mild buying momentum, while the MACD suggests a shift could be near.
• Open interest has surged 30.29%, reflecting strong market participation.

Pudgy Penguins (PENGU) continues to strengthen its market presence through a solid price recovery. Over the past 24 hours, the token has gained 15.04%, while weekly performance shows a steady 9.51% rise. Currently, the token is trading at $0.03580, supported by a significant increase in activity.

The 24-hour trading volume has surged 225.2% to reach $1.01 billion, highlighting strong liquidity and participation. With a market capitalization of $2.24 billion, the token ranks among tokens attracting heightened attention in favorable market conditions.

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

PENGU Technical Outlook and Breakout Potential

According to the crypto analyst Ali, chart analysis highlights an important development for PENGU. After a sharp rally in July, the token corrected within a falling wedge pattern, a setup often associated with bullish reversals. Support was repeatedly tested at the 0.618 Fibonacci retracement level of $0.02966, which held firm and reinforced investor confidence.

The recent move above the descending channel suggests the correction phase may have ended. Price action is now testing the 0.786 retracement level at $0.03618, which serves as the next critical resistance. A successful break above this zone could drive momentum toward higher Fibonacci targets, particularly $0.04662 and beyond.

Beyond that, the 1.272 and 1.618 Fibonacci extension levels at $0.06433 and $0.09691, respectively, offer potential longer-term upside targets if bullish momentum continues. However, holding above $0.02966 remains essential to keep the bullish outlook intact.

RSI and MACD Indicate Market Transition

Momentum indicators present a mixed but evolving picture. The Relative Strength Index (RSI) at 53.89 is mildly bullish but did not enter into overbought territory. This balance indicates that there still exists the potential for wider advances if buying pressure holds.

The MACD line and the signal line are close to each other, and the histogram is marginally negative. This formation exposes the persistent bearish pressure, but equally the potential for a bullish crossover in the event of momentum changes. The investors are watching this level closely in the expectation that a confirmed crossover will initiate new buying and support the breakout call.

Open Interest and Market Sentiment

Derivative action provides a positive movement. PENGU open interest has jumped 30.29% to $412.81 million in response to firmer positioning by retail and professional investors. Such surges are often seen before sharp price volatility, so the market could be gearing up for bolder moves.

Despite this surge, the OI-weighted funding rate stands at 0.0070%, representing neutrality. The neutrality reflects the hesitation by the traders to confirm price action. As the bullish sentiment becomes stronger along with increasing participation, PENGU can get additional momentum towards the higher levels of resistance.

Also Read: Pudgy Penguins (PENGU) Price Holds $0.03 Support, Eyes Breakout Toward $0.043