- PENGU price trades in a falling wedge at an important demand zone at $0.029.
- Pudgy Penguins ecosystem is enhanced through the official support of ETH.
- Analysts are aiming at a level of 0.046 following the potential wedge break out of the $0.028 area.
Bullish Momentum Builds as PENGU Price Approaches Key Breakout Zone
With the recent events that have encircled the meme token, the market sentiment has shifted and become more bullish with the meme token PENGU price. Interestingly, crypto analyst Sjuul spotted a falling wedge formation in the 12-hour PENGU price chart, which is a structure that offers bullish reversal opportunities. He noted that the token would burst after a test on recent lows, and this would trigger a vigorous momentum.
This view was echoed by another analyst who said that PENGU price might be working on one of its last accumulation zones. By pointing out the chart formation and the next game concerning the Pudgy Party, he pointed out that he was all in at this point which indicated the upsurge in the communal excitement.
To further fuel the movement, the official Ethereum account recently promoted the Pudgy Penguins project, which put a credibility boost on the ecosystem. This endorsement is a great vote of confidence according to analysts.
Technically, the chart indicates that the price is compressing in a falling wedge, and the PENGU price is trading just outside a critical demand zone of $0.028-$0.032. The previous breakout was supported by this zone historically. A possible fake-out at lower levels would be the start of a liquidity grab, then a subsequent rise in the price by buyers.
The wedge intersects the preceding accumulation area and introduces a confluence to a bullish reversal. A wedge breakout may result in a V-shaped recovery, and possible upward targets are $0.038 and $0.046, the latter being the final resistance zone.
To hedge, traders may look to longs at about $0.029, with stops at about $0.0275. In case of this set up failure, the second big support is at $0.018.
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