Pudgy Penguins (PENGU) is attracting significant attention in the cryptocurrency market, indicated by both technical patterns and on-chain data.

Crypto analyst Ali Martinez pointed out several indicators that suggest the token is likely preparing for a substantial move. Currently, the price stands at $0.022, marking a 5% increase within the last 24 hours, with trading volume reaching $223 million.

Key Technical Analysis

The token’s chart displays a cup-and-handle pattern, typically seen before price surges. A robust support level exists around $0.0174, indicating stability following a small dip. A crucial resistance point lies at $0.045; crossing this threshold could potentially lead to prices nearing $0.08, $0.114, and possibly $0.185, based on previous Fibonacci projections.

Analyst Ali Martinez remarked that “everything lines up for a new bull rally,” reflecting a favorable convergence between market performance and technical analysis.

Moreover, the PENGU team has made announcements regarding collaborations with DreamWorks’ Kung Fu Panda and Invariant, a policy firm based in Washington. Notably, the project has also been highlighted by Jefferies, a major investment bank, in its analyses of digital assets.

Brand Expansion

The brand continues to grow, having sold over 1 million Pudgy Penguin toys globally. Their mobile game, Pudgy Party, has surpassed 900,000 downloads, and they were recently seen at a film awards event in South Korea. An ETF application for PENGU is currently under review.

Momentum Indicators

The daily chart indicates that Bollinger Bands are tightening, a typical precursor to a price movement. After bouncing off the lower band around $0.01708, PENGU is trading near the 20-day average at $0.023. For momentum to accelerate, prices need to test the upper band near $0.029.

Market Sentiment

Interest in PENGU futures stands at $122.36 million, as per Coinglass data, a moderation from its previous peak above $650 million in July, yet shows signs of a rebound.

Whale Monitoring

Recent on-chain data from CryptoQuant confirms an uptick in whale transactions, concentrated between $0.02 and $0.03 since early October, signifying potential accumulation zones akin to those earlier in the year.

This collective market activity suggests a foundation around current prices of PENGU, especially as significant buyers continue engaging before hitting critical resistance.