In the world of cryptocurrency, the Pudgy Penguins ($PENGU) are facing a precarious situation as its token is in a continued downtrend from its peak earlier this year. As of April 4, 2025, the price of $PENGU stands at $0.004731. The token is grappling with selling pressures, as is evident from a clear breakout on its price chart at various Fibonacci retracement levels.
A glimmer of hope was seen in late 2024 when the token moved a little to the upside, hitting $0.046639. However, this was short-lived as it descended into the channel shown in the chart. Now, the price is maneuvering into a critical zone of support, which might be the deciding factor for the continuation of the downtrend or a potential reversal in the upcoming days.
A closer look at the price charts and the Fibonacci retracement levels indicate that $PENGU struggled to maintain the critical support levels. After reaching a peak at $0.046639, the price retracted to 0.618, testing $0.019705, and to 1.0, testing the level at $0.011569. Unfortunately, the token failed to sustain itself at this level, indicating the mounting acceleration of the downward momentum. This led to a further breakdown beneath these levels, with the price now nearing the 1.618 extension level at $0.004888.
The present price action around the level of $0.004731 is once again nearing the 1.618 Fibonacci extension level, which has previously served as a strong support. If the token fails to hold this level, we might see further downside, and in the coming weeks, the price may see lower tests. The recent price drop has occurred on an increase in selling activity, characterized by volume, suggesting that sellers are entering the market in larger numbers. Traders are now poised to watch for signs of a possible reversal or further weakening of price as the token teeters alarmingly close to the critical support level.
From a technical indicators perspective, the Stochastic Oscillator, located at the bottom of the chart, corroborates the bearish trend. As the indicator falls in the oversold zone, it suggests that the price may experience a short-term upward correction but will resume its downward trend in the long run. Thus, it signals a potential temporary rally before the overall downtrend continues unless a strong reversal emerges. The RSI also supports this, being well below 30 for a prolonged period, indicating that $PENGU is very much oversold.
The Bollinger Bands are narrowing, signifying low volatility. This period of tight consolidation usually results in a strong move, either upward or downward. A breakout beneath the lower Bollinger Band could signify further declines, and, as such, the token could be heading toward a price target of $0.003034 as projected on the chart.
In this shifting landscape of cryptocurrency, the trajectory of $PENGU will be one to watch closely in the coming weeks for both current token holders and potential investors.
