After a 7% Dip, Will Pudgy Penguins (PENGU) Begin an Icy Climb or Face a Deeper Freeze?

- After a 7% drop, Pudgy Penguins (PENGU) is trading around $0.038.
- PENGU’s daily trading volume has surged to $791.68 million.
With all the major crypto assets painted in red, the market cap has slipped to $3.87 trillion. The tokens have shed their recent gains, but the overall market sentiment is greedy, as the Fear and Greed Index reading is holding at 63. Meanwhile, Pudgy Penguins (PENGU) have been trapped in the bearish grip, losing over 7.11%.
PENGU opened the day trading at a high of around $0.04067. The bearish wave that took control of the asset has triggered the price to plunge toward a low of $0.03669. A steady and continuous downside movement of the asset would invite more losses. At press time, Pudgy Penguins traded within the $0.03806 range.
With the asset’s market cap reaching $2.38 billion, PENGU’s 24-hour trading volume has spiked by over 3.70%, touching $791.68 million. In addition, the market has witnessed a 24-hour liquidation event of $2.89 million worth of Pudgy Penguins, as reported by the Coinglass data.
Also, PENGU is showing signs of a potential rebound. The TD Sequential has flashed a buy signal, while the setup trendline continues to hold as support. A bullish divergence on the RSI adds to the positive outlook, and the price is currently testing the lower boundary of its trading channel.
Bear Trap or Bounce Back? What is Next for PENGU?
Pudgy Penguins’ current negative outlook could trigger the price to retrace toward the immediate support at $0.03799. If the bearish correction deepens, the asset might initiate the emergence of a death cross. The bears drive the price to its key support zone at $0.03793 or even lower. Contrarily, assume the entry of the bulls, PENGU could climb to its nearby resistance at the $0.03812 range. Further correction on the upside might push the formation of a golden cross, likely sending the asset’s price to the $0.03818 zone.
Notably, the Moving Average Convergence Divergence (MACD) line and signal line of the asset are positioned below the zero line, which indicates a sturdy bearish crossover. The overall sentiment may continue to remain negative until the lines cross above zero. Besides, PENGU’s Chaikin Money Flow (CMF) indicator found at -0.27 suggests selling pressure in the market. Also, the money is flowing out of the asset and reflects a potential weakness in price momentum.
PENGU’s Bull-Bear Power (BBP) reading settled at -0.002562, signalling a slight bearish dominance in the market. There is downward pressure, and the price may struggle to rise. Moreover, the daily Relative Strength Index (RSI) of the asset at 38.80 points out that the asset is in bearish territory, with enough room left before hitting its oversold territory.
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