As the much‑anticipated Q4 kicks off today, the cryptocurrency market is showing strength as both Bitcoin (BTC) and Ethereum (ETH) surged over 3% and 5% in the past 24 hours. Riding this momentum, several altcoins are flashing bullish signals — and Pudgy Penguins (PENGU) is one of them.
PENGU is back on the bullish track with 14% gains, and more importantly, its price chart is signaling a harmonic structure that could point to further upside in the near term.
Harmonic Pattern Hints at Potential Upside
On the daily chart, PENGU is forming a Bearish Cypher harmonic pattern. Despite the bearish label, this setup often delivers a strong CD leg rally before the price action nears its Potential Reversal Zone (PRZ).
The structure began at Point X ($0.046600), corrected to Point A, rebounded to Point B, and then sharply dropped to Point C ($0.026240). Since then, PENGU has bounced strongly, reclaiming its 200‑day moving average (MA) and is now trading near $0.03174, showing notable resilience.
The immediate resistance to watch is the 50‑day MA at $0.03186. A sustained breakout above this level would confirm bullish momentum and set the stage for higher moves.
What’s Next for PENGU?
If bulls manage to reclaim the 50‑day MA, the CD leg could extend toward the PRZ between $0.04253 (0.786 Fibonacci extension) and $0.04660 (1.0 extension). These levels are critical upside targets, as they often mark the completion of the cypher pattern.
On the flip side, PENGU must hold support near the 200‑day MA ($0.03014). A breakdown below this level could invalidate the harmonic structure and weaken the bullish case.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.