The cryptocurrency market has experienced a notable bullish surge in the past 24 hours. Both Bitcoin (BTC) and Ethereum (ETH) have seen price increases of 3% and 6% respectively, contributing to a broader market recovery that has allowed major tokens to regain momentum. Among these is Pudgy Penguins (PENGU), which has seen a significant price appreciation.
PENGU has surged by more than 10%. Beyond this price recovery, its chart is indicating a structural shift, which could signal the beginning of a bullish continuation if this trend is confirmed.
Rounding Bottom Pattern in Play
On the daily timeframe, PENGU appears to be forming a textbook rounding bottom pattern. This is a classic bullish reversal setup that typically emerges after a prolonged period of decline. The structure signifies a transition phase where selling pressure gradually diminishes, and buying interest strengthens.
The token experienced a sharp decline from its neckline resistance level, which was around $0.01650, to establish a major low at $0.009343. This bottom price level has served as a crucial demand zone, where buyers have consistently defended the price, preventing further declines and laying the groundwork for a gradual reversal.
Since then, PENGU has been steadily climbing back in strength and is currently trading at $0.01247. This indicates early signs of stabilization and the potential formation of a solid base.
Future Outlook for PENGU
To fully validate the rounding bottom pattern, PENGU needs to reclaim the 50-day moving average, which is currently positioned at $0.01441. A clear breakout above this dynamic resistance level would likely serve as the confirmation trigger, suggesting that the reversal is not just structural but actively underway.
Once this level is surpassed, the next significant technical area to monitor will be the neckline barrier at $0.01650. A successful breach above this zone could pave the way for bullish continuation and potentially ignite a stronger rally, as technical sentiment shifts in favor of buyers.
Until these conditions are met, the pattern remains in development. A failure to reclaim the 50-day moving average on the initial attempt could lead to a short-term pullback or sideways consolidation. However, the broader bottoming structure would still be considered valid as long as higher lows continue to be established.