Crypto enthusiasts are buzzing about $PENGU, the official token of Pudgy Penguins, following a detailed analysis by renowned trader Altcoin Sherpa. In a recent post on X, Sherpa highlighted a potential buying opportunity for $PENGU, suggesting it looks “decent” around its current price level.
The analysis, accompanied by a Trading View chart, points to a strong retracement with the token nearing the 0.786 Fibonacci retracement level, a key technical indicator often used to identify support zones. This level, combined with higher volume regions, makes it an attractive spot for investors to start “nibbling” through dollar-cost averaging (DCA).
Dollar-Cost Averaging: A Strategic Entry Approach
Sherpa advises a cautious approach, recommending DCA for long-term holders to mitigate risks, while suggesting active traders wait for an upward price movement for safer entries. The token, which has seen a significant drop from its highs, currently trades at approximately $0.015359 USD, with a market cap ranking it at #71 on CoinMarketCap. Despite the downturn, Sherpa remains optimistic, labeling $PENGU as one of the better projects in the crypto space, driven by its strong community and meme-driven appeal.
$PENGU I think looks decent around this area. It's had a strong retrace but this seems like a decent spot to start nibbling. Near the 0.786 fib and higher volume region, I think if you DCA around this region you will be ok later.
if actively trading though I would rather buy it… pic.twitter.com/5zWylljCIF
Navigating Volatility: Risks and Rewards
The chart also reveals a historical support zone around $0.05136, where the Relative Strength Index (RSI) is low, mirroring previous bottoms. This could signal a potential reversal if buying pressure increases. However, the crypto market’s volatility and external influences mean traders should stay vigilant.
With $PENGU’s unique brand identity and growing fanbase, this could be a pivotal moment for the token. Investors are now watching closely to see if this technical setup will spark a recovery.