How and why PENGU could soon face a 40% price drop
- At press time, PENGU’s market was bullish after current positive factors, however it might be prone to fall by 24%-40%
- Swing merchants can look ahead to key liquidation ranges to be swept, earlier than trying to enter trades
Pudgy Penguins [PENGU] has rallied by 137% in a fortnight, flipping its market construction decisively bullish within the course of. The early February resistance at $0.0135 was examined as resistance and at press time, the $0.0108 assist stage appeared to be holding PENGU up.
Bitcoin’s [BTC] transfer larger by 15% over the previous two weeks has given many altcoins room to breathe. Not all altcoins managed to outperform BTC so massively although, implying that relative energy was on Pudgy Penguins’ facet.
The Pudgy Penguins NFT floor price has additionally been trending larger, serving to clarify the demand for PENGU tokens. For instance – IT was at 11.5 ETH at press time, up from 9.54 ETH on 17 April.
PENGU prone to see a deeper retracement
Supply: PENGU/USDT on TradingView
The 1-day chart revealed that the Pudgy Penguins token smashed previous native resistance ranges (orange) within the second half of April. The buying and selling quantity witnessed an uptick, legitimizing the rally.
After hitting a excessive of $0.0141, PENGU bulls had been rebuffed. The Fibonacci retracement ranges confirmed that the value may descend additional. The 61.8% and 78.6% retracement ranges at $0.0082 and $0.0066 gave the impression to be the important thing assist ranges that bulls should defend.
They’d additionally supply a superb shopping for alternative upon a retest. The OBV has been trending larger over the previous month, breaching the mid-March highs. It signified a hike in demand for PENGU. The RSI appeared to be falling from overbought territory as the value retraced too, indicating a reset interval.
The 1-month liquidation heatmap revealed that there was a buildup of liquidation ranges at $0.012 and $0.00966. The $0.0083-level could be one other enticing magnetic zone, and it additionally lined up effectively with the 61.8% retracement stage.
The proof at hand confirmed that PENGU may see additional draw back, earlier than resuming its rally. As a comparatively small-cap coin, volatility is to be anticipated. If the token can see a bullish response at $0.0083, the bulls may goal the $0.0142-$0.0151 area subsequent.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
