TL;DR

PENGU trades in a falling channel, nearing breakout zone with Fibonacci targets up to $0.191. RSI and moving averages show cooling momentum, but the broader uptrend remains technically intact. New Pudgy Penguins game goes live as volume spikes and analysts eye $0.14 resistance zone.

Pullback Forms Bullish Setup on the Chart

Pudgy Penguins (PENGU) is trading around $0.029, showing a decline of 4% in the last 24 hours and 10% over the past week, based on current market data. The recent drop follows a strong rally earlier this summer and has brought the price back into a range seen as a key support zone.

On the daily chart, PENGU is moving within a falling channel after a sharp rise from below $0.008 to just under $0.046 in July. The price is now near the 0.786 Fibonacci retracement level at $0.0317, which is often watched during corrections for signs of a reversal.

Crypto analyst Ali Martinez described the current move as a “healthy pullback” and suggested that a new leg higher could form in September. If PENGU breaks above the top of the falling channel, the next price zones could extend to $0.0466, $0.070, $0.098, $0.141, and $0.191, based on Fibonacci extensions.

This looks like a healthy pullback for $PENGU before the next leg up. September is going to be lit!! pic.twitter.com/wnbrCFxAS8

Analyst Sees $0.14 as Key Target If Support Holds

According to @XFinanceBull, PENGU has returned to a buy zone between $0.025 and $0.032. The trendline from earlier this year remains intact, and the price continues to trade above it. “This thing rips past $0.14 easily,” the analyst said, referring to the next resistance level that could come into play if demand increases.

A long-term price level of $0.560 is also marked on the chart. While this is far from current prices, it reflects possible upside if adoption continues through products, games, and other use cases that are currently not priced in.

Momentum Slows But Broader Trend Still Intact

On the weekly chart, PENGU sits under its 9-week moving average ($0.0338), but it is still above the 21-week moving average ($0.0210). This indicates some short-term weakness, but the long-term trend remains intact, provided PENGU does not move below the lower moving average.

Meanwhile, the RSI reading of 54 is a little bit below its 14-week average of 55, which indicates some deceleration in momentum. Somewhat more telling is the fact that it is still above 50, which indicates that the buyers are still in control.

Source: TradingView Additionally, a mobile game featuring Pudgy Penguins characters launched globally on August 29. Developed in partnership with Mythical Games, the title includes mini-games, digital items, and Web3 features. Mythical is also known for other titles such as NFL Rivals and Blankos Block Party.

According to Coinglass, the trading volume increased by 58% to $716.72 million, with open interest declining by 5% to $275.33 million. This indicates some traders are scaling back their positions amid an uptick in short-term activity. Market participants are keen to observe whether PENGU can overcome the important resistance barrier this month.