The Pudgy Penguin [PENGU] token has experienced a significant 9% jump since being listed on SoFi on October 20th. This listing has sparked renewed interest in a token that has been struggling with a decline in value for some time.
Following a period of selling pressure that drove PENGU from $0.0112 to $0.00706, buyers stepped in to defend support levels. The price then rose to $0.00807, where buyers managed to reverse the downward trend.
However, PENGU has yet to break out of the larger downtrend. Currently trading near its previous high of $0.0085, this level previously served as strong support before being breached in early October.
The SoFi listing has reignited interest in PENGU, leading to increased buying activity. However, sustained price growth is necessary for this renewed interest to translate into a lasting recovery.
PENGU liquidation levels to monitor
The current recovery of PENGU could face a potential price swing due to heightened leveraged trading activity around the token. The 24-hour heatmap indicates a significant cluster in the $0.00830–$0.00835 range.
If a breakout occurs in this range, short sellers may be compelled to buy back positions, accelerating gains and challenging the $0.00850 resistance level. On the downside, a substantial cluster is observed at $0.00790–$0.00795, indicating potential support levels.
A lack of buyer support in the $0.00780 range could trigger forced long closures, leading to additional selling pressure and potential declines to $0.00780 and beyond.
PENGU’s long-term prospects
Looking beyond short-term price challenges, PENGU’s future success hinges on its ability to sustain demand and reverse the current bearish trend over time.
If PENGU can establish a strong weekly breakout accompanied by increased volume and accumulation, it could pave the way for a price surge towards the $0.012-$0.015 range. Further upside potential up to $0.250-$0.340 may be achievable with broader market participation.
However, the circulating supply remains a concern, with 70% of PENGU tokens already in circulation out of a maximum of 88.88 billion. A drop in demand could impede significant future gains for PENGU.
Final Summary
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Pudgy Penguins saw an 8.9% increase post SoFi listing but faces resistance at $0.00850.
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PENGU could aim for $0.0120–$0.0150 following a confirmed breakout, while breaching $0.00706 poses a risk of dropping towards $0.0037.
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