- PENGU was up 230% from its yearly low of $0.0038
- On-chain data hinted at a strong, sustainable uptrend if market interest remains positive
Pudgy Penguins [PENGU] made a remarkable recovery in April. The memecoin lost 91% of its value in Q1, dropping from $0.046 to 0.003. Like most altcoins and memecoins in Q1, it appeared ‘dead’ after such a massive wipeout in value.
However, PENGU recovered by over 230% from its April and yearly lows of $0.0038. Hence, the question – What’s next for bulls, and can they extend the rally?
Source: PENGU/USDT, TradingView
Pudgy Penguins’ U-turn
For swing traders who scooped PENGU at its April lows, the 230% gains could be tempting for profit taking. In fact, the daily RSI entered the overbought zone, suggesting that a cool-off or retracement could be likely.
If so, the price imbalance and fair value gap (FVG) above $0.010 (cyan) may be key support and potential buying opportunities.
Source: PENGU/USDT, TradingView
Additionally, the $0.009-$0.013 zone was a key price range in February. And, a similar formation could be repeated if PENGU’s uptrend cools off.
A tell-tale sign for sustained upward momentum would be the OBV (On Balance Volume) surging above the February-April resistance level. However, in case of an OBV rejection at the resistance, PENGU could slide to the FVG zone.
On the contrary, the aforementioned projection would be invalidated if PENGU climbs above $0.013. This would happen if BTC surges beyond $100k. In such a scenario, $0.017 would be the next bull target.
On-chain signal strength
Source: Santiment
From an on-chain perspective, the recent upswing has been strong and sustainable. The social volume hit a new monthly high. In addition, the overall weighted sentiment hit record positive levels too.
Collectively, the indicators suggested that PENGU has massive market interest and speculators are bullish on its price prospects.
In conclusion, PENGU’s on-chain data revealed the rally is still strong. The price chart indicated the uptrend could be extended if trading volume (OBV) expands. Otherwise, a price reversal or cool-off could likely be due to the overbought condition on the daily RSI.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
