The Pudgy Penguins price plunged 54% in the last 24 hours to trade at $0.03117 as of 11:14 p.m. EST on trading volume that climbed to $2.2 billion.
The PENGU price drop came after the non-fungible token (NFT) project’s much anticipated Dec.17 airdrop. Pudgy Penguins has distributed approximately half of PENGU’s total supply of nearly 89 billion tokens to the community.
the $PENGU airdrop was one of the best airdrops out there in terms of onboarding masses
instead of gatekeeping the airdrop only to Pudgy Penguins and Lil Pudgy owners
even people who never engaged with the Pudgy ecosystem were able to receive a nice airdrop simply for being a…
— Jeremy (@Jeremyybtc) December 17, 2024
The token debuted at a market capitalization of around $2.8 billion but has since dropped to a market cap of less than $2 billion, according to data from CoinGecko.
Pudgy Penguins Price Gearing Up Towards A Bullish Trend Reversal
After a sharp price spike to approximately $0.058, the Pudgy Penguins price experienced significant selling pressure, driving it down. The price touched the lower support line of the falling wedge multiple times, showing strong buyer interest at this level.
A breakout has occurred above the upper trendline, within the $0.02882 resistance, indicating a potential reversal from the downtrend, according to data from GeckoTerminal. This breakout suggests that the downward momentum may be exhausted, and buyers are stepping in to regain control.
The 50-day Simple Moving Average (SMA), displayed as a white line, indicates the recent price direction. Initially, the price consistently traded below the 50-day SMA, confirming bearish sentiment during the downtrend. However, the breakout above the 50-day SMA signals a shift toward bullish sentiment, as price action is now trading above this key moving average.
The Relative Strength Index (RSI) value currently stands at 57.74, which reflects a moderate bullish momentum. Earlier, the RSI surged toward overbought territory (above 70) after the breakout, indicating strong buying pressure during that phase. The current RSI near 57 shows that the market is neither overbought nor oversold, giving ample room for further upward movement if buying pressure continues.
The PENGU price action has successfully broken out of a descending wedge, a classic bullish reversal pattern. This suggests that buyers are regaining control, and a potential short-term uptrend could emerge. If the buying continues, PENGU could soar even higher as the bulls target the next possible resistance level at $0.045.
