The native token of the Pudgy Penguins ecosystem, $PENGU, has captured the attention of traders with a fresh technical signal that could indicate a significant price movement. Launched on Solana, Pudgy Penguins has expanded beyond its popular NFT collection to become a comprehensive Web3 brand, featuring digital collectibles, merchandise, and strategic partnerships that have garnered over 300 billion views across various platforms. Following its launch, the token reached an all-time high of $0.068, but has since experienced a prolonged downtrend, trading around $0.012 as of January 17, 2026, with a market capitalization nearing $760 million.
Key Resistance Defines Breakout
Crypto analyst Ali Charts recently identified a TD Sequential buy signal on the 4-hour chart for $PENGU. The TD Sequential indicator, developed by Tom DeMark, is used to pinpoint potential trend exhaustion points by counting a series of candles. The current chart indicates a countdown culminating in a '9' buy setup, appearing amidst a sequence of declining candles that show price points dipping from $0.0130 to $0.0120. A downward-pointing triangle on the chart also highlights recent bearish pressure, suggesting that buyers might be starting to enter the market.
Ali Charts noted that a breach of the $0.0138 resistance level, identified as a crucial trigger point in previous analyses, could initiate a bullish breakout with a target price of $0.0204. This outlook is supported by broader market observations, where $PENGU has already seen an increase of over 50% from its recent lows. Analysts, including Elite Crypto and CRG, have pointed out breakouts from falling wedge patterns. Additionally, discussions on X suggest the formation of inverted head-and-shoulders patterns on daily charts and successful reclaims of key Exponential Moving Averages (EMAs), with some projections forecasting targets up to $0.035 if Bitcoin maintains stability above $95,000.
Pattern Confirmations Align
The Pudgy Penguins brand continues to foster optimism within the market. Real-world integrations, such as the partnership with the NHL Winter Classic, and ongoing Soulbound Token (SBT) drops contribute to the project's distinctiveness in the competitive meme coin sector. Nevertheless, inherent risks persist; meme tokens are characterized by high speculation, and a failure to maintain levels above $0.0119 could invalidate the current technical setup, potentially leading to further price declines. The broader market conditions, including any softness in Bitcoin's performance, also warrant cautious consideration.
For investors, this technical signal presents a potentially high-reward scenario should the anticipated breakout occur. As noted by an observer on X, "Breakouts look boring before they look obvious." With a bullish sentiment rating at 85% and increasing trading volume, $PENGU may be poised to regain significant market traction.