Pudgy Penguins Downtrend: Will $PENGU Hold at $0.0047?

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• $PENGU is testing crucial support at $0.0047 after a strong decline.
• The price is near the 1.618 Fibonacci extension at $0.0048.
• Traders should monitor for a possible reversal or continued downtrend.

Pudgy Penguins ($PENGU) still seems to be in a downtrend from its peak earlier this year with a price of $0.004731 as of April 4, 2025. According to the chart, the token is confronting selling pressures, with a clear break out on its price chart at various Fibonacci retracement levels. The token moved a little bit to the upside in late 2024, hitting $0.046639 before descending into the channel shown in the chart. Price is now moving into a critical zone of support, which may dictate the continuation of the downtrend or a possible reversal in the coming few days.

$PENGU / $USDT pic.twitter.com/uzf2pRREkO

— BigMike7335 (@Michael_EWpro) April 4, 2025

Price Movement and Fibonacci Retracement Analysis

Understanding the price charts, the Fibonacci retracement levels show that $PENGU failed to hold on to the critical support levels. After reaching a peak at $0.046639, the price retraced to 0.618, testing $0.019705, and to 1.0, testing the level at $0.011569; however, the token could not manage to sustain itself at this level, indicating the increasing acceleration of the down momentum. Ultimately, it initiated a further breakdown beneath these levels, with the price now approaching the 1.618 extension level at $0.004888.

The ongoing price action around the level of $0.004731 is approaching yet again the 1.618 Fibonacci extension level, which previously has acted as strong support. There is a case for further downside if the token is unable to hold this level, and in the following weeks, the price may see lower tests. The recent drop, meanwhile, has taken place on an increase in selling activity, characterized by volume, suggesting that sellers are entering the market in greater numbers. Traders are now watching for signs of an impending reversal or further weakening of price as the token sits precariously close to the critical support level.

Technical Indicators and Momentum Shifts

The Stochastic Oscillator, located at the bottom of the chart, reinforces the conclusion of a bearish trend. Since the indicator falls in the oversold zone, it implies that price may undergo a short-term upward correction but will resume its downward trend in the long run. Thus, this signals a possible temporary rally before the overall downtrend continues unless a strong reversal emerges. Also, the RSI is still in agreement, being well below 30 for a prolonged stretch, indicating that $PENGU is very much oversold.

Bollinger Bands are getting narrower, signifying low volatility. This period of tight consolidation normally produces an eruption, one way or another, up or down. A breakout beneath the lower Bollinger Band could suggest further declines, and, as such, the token could head toward a price target of $0.003034 as projected on the chart.

Original Article