Pudgy Penguins Shows Signs of Life with 8% Gain Amid Bearish Pressure

• Pudgy Penguins (PENGU) price surged 8% in the last 24 hours, showcasing buyers’ presence at current levels.
• Despite the price surge, PENGU is still in a bearish zone as it trades below the 50-day and 200-day EMAs.

PENGU is witnessing mounting bearish pressure as it is currently priced at $0.012, which is much lower than its recent peak of $0.017. Technical indicators are indicating that the market may go lower, as the price is falling continuously and the momentum is on the negative side.

As per CMC data, PENGU is currently trading at the price of $0.0101, with an intraday gain of 8%, showing buyers presence at the current support level. Since mid-May, the cryptocurrency has been in a descending channel, showing a clear drop in prices.

The moving average configuration is showing a bearish trend on different timeframes. The price is currently trading below 50-day and 200-day EMAs, and the shorter periods have moved below the longer ones’ EMAs, which is a typical sign for bearishness. The price is regularly below the main moving averages, which confirms the downtrend and means that any gains may be sold at those levels.

What Next for Pudgy Penguins (PENGU) Price?

The signals coming from momentum indicators are mostly negative. The Awesome Oscillator (AO) uses red and green bars to signal that the market is moving back and forth without a clear trend. However, the reading of -0.0005137 indicates that bearish momentum is still present despite some minor changes in the market

Source: TradingviewRSI is now at 37.82, which is close to oversold but not quite there yet, so there could still be some downward movement before a strong bounce happens.

The technical chart shows that PENGU has followed the trendlines of the descending channel which has created a reliable trading range. The token just reached the lower limit of the channel and did not break, so the overall structure is still there. The Awesome Oscillator histogram in the technical chart suggests that there is more selling than buying during recent price drops.

When looking at risk management, PENGU traders should pay attention to a clear break below the lower trendline of the channel, which could lead to more selling and move the token to the $0.008 support area. On the other hand, if current levels are strongly bounced with higher trading volume, it could indicate a coming reversal, though any rise would have to overcome the moving averages and the channel’s top around $0.012-0.013 to be taken seriously.

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