After suffering a steep correction over the past week, Pudgy Penguins (PENGU) may be on the verge of a trend reversal.
Despite being down 15.46% in the last 7 days and over 7% in the past 24 hours, the token is showing early signs of a potential rebound, according to crypto analyst Ali Martinez.
Currently trading at $0.03669 with a market cap of $2.3 billion, PENGU saw a slight uptick of 0.16% in the past hour. While the overall sentiment remains cautious due to recent volatility , Ali believes that several technical indicators point to an incoming bounce.
In a post shared on X, Ali cited multiple bullish signals forming on the 1-hour chart, including a TD Sequential buy signal and a bullish divergence on the Relative Strength Index ( RSI ). He also pointed to a supportive trendline holding firm and noted that PENGU is trading at the lower boundary of a channel—often a zone for potential reversals.
“TD Sequential flashes a buy signal… All signs point to liftoff,” Ali wrote, suggesting that the current price range could be a strong entry point for traders betting on a rebound.
PENGU’s 24-hour trading volume has surged above $817 million, with over 22.3 billion tokens exchanged, indicating heightened interest from market participants despite the recent pullback.
Whether this bounce materializes into a full reversal remains to be seen, but with momentum gradually shifting, all eyes are now on whether PENGU can break back above resistance levels near $0.040 and regain upward traction.
