The broader cryptocurrency market is showing an encouraging tone today, with Bitcoin (BTC) and Ethereum (ETH) both trading over 1.50% higher, setting the stage for potential upside in several altcoins— including the NFT-based token Pudgy Penguins (PENGU).
PENGU is back in green with modest intraday gains, and the latest chart setup suggests that the token may be gearing up for a larger upside move if key technical levels continue to hold.
Falling Wedge Pattern in Play
On the 4H chart, PENGU appears to be forming a falling wedge— a bullish pattern that often signals weakening bearish momentum and the potential for a trend reversal.
Recently, PENGU’s correction brought its price down to the wedge’s lower boundary near $0.01939, a key support level that has once again held firm. After testing this zone, PENGU bounced back and is now trading around $0.02097, sitting just below its 50-hour moving average (MA) at $0.02159.
Previously, this moving average acted as a resistance zone. Therefore, a decisive breakout above the 50-hour MA could be the first confirmation that bullish momentum is returning to the market.
What’s Next for PENGU?
If PENGU manages to defend its wedge support and closes above the 50-hour MA, traders could see the token climb toward the upper resistance line of the wedge. A confirmed breakout from this level— ideally followed by a retest of the breakout zone— could set the stage for an extended rally, potentially driving the token above $0.02886 in the coming weeks.
Conversely, if PENGU fails to maintain its position above the current range, it may revisit the lower support trendline before bulls make another attempt to push higher.