Pudgy Penguins (PENGU) is showing the first real sign of strength after weeks of steady decline, with several high-timeframe indicators suggesting that the market may be attempting to form a bottom.
While volatility remains elevated, the latest structure aligns with conditions that have previously preceded sharp recoveries in meme-driven altcoins.
High-Timeframe Indicators Point Toward a Potential Bottom
The strongest development comes from analyst Ali Martinez, who reported a weekly TD Sequential Buy Signal, which is one of the most reliable exhaustion indicators. Historically, this signal appears at moments of trend fatigue, often marking the beginning of a new upside phase or a multi-week relief rally.
PENGU continues to defend the $0.010–$0.011 zone, with a weekly TD Buy Signal hinting at a potential reversal brewing. Source: Ali Martinez via X
Price action supports this reading as PENGU has been basing tightly around $0.010–$0.011, showing diminishing sell pressure and early demand absorption. Long wicks on recent candles reinforce the idea that buyers are quietly returning to defend this zone.
Bullish Patterns Forming on Lower Timeframes
Short-term market structure has also started to look increasingly constructive, with multiple analysts spotting early reversal signals on the lower timeframes. Pick highlighted the development of a 4H bull flag forming between roughly $0.0108 and $0.0122, a zone that has repeatedly acted as the midpoint of recent price rotation. This flag is emerging right after PENGU’s rebound from the lower demand region near $0.0095 to $0.0100, creating a classic setup where a breakout above the flag’s upper boundary could open the door to a quick push back towards the $0.0135–$0.0140 reaction zone.
Pudgy Penguins is carving out a clean 4H bull flag, tightening between $0.0108 and $0.0122 as momentum slowly shifts back toward buyers. Source: Pick via X
Adding to that, Richie pointed out a significant bullish divergence on the daily RSI, with price making fresh lows around $0.0090 while RSI printed a higher low, a strong sign that downside momentum has begun to exhaust.
Daily RSI is printing a clear bullish divergence, signaling momentum exhaustion even as PENGU briefly dipped toward $0.0090. Source: Richie via X
Together, the bull flag on the 4H timeframe, the daily RSI divergence, and the engulfing reversal candle create a tightly aligned cluster of bullish signals, the type of confluence that often precedes multi-day upside attempts. When layered on top of the higher-timeframe TD Sequential buy signal, the alignment becomes even more compelling.
Smart Money Data Raises a Caution Flag
While the technical picture leans constructive, participants should note one caution point: Stalkchain reported that PENGU was the most sold token by smart money in the last 24 hours.
This doesn’t invalidate the bullish setup but serves as a reminder that early reversal phases can be noisy. Smart-money rotation is common before strong trend shifts, but it also means traders should avoid chasing breakouts without confirmation.
Smart-money flow shows PENGU as the most sold token in the past 24 hours, adding a layer of caution to an otherwise constructive setup. Source: Stalkchain via X
For now, the spike in smart-money selling is best treated as a risk signal, not a trend-ending event.
PENGU Price Prediction: Can This Structure Drive a Strong Rebound?
PENGU’s market structure is finally offering a constructive path for recovery, assuming support near $0.010 continues to hold:
If bullish structure holds:
Initial target: $0.013–$0.015 (first liquidity pocket).
Breakout target: $0.017–$0.020 (major supply zone + measured move from bull flag).
Momentum-based rallies in meme-themed tokens often accelerate quickly once liquidity flips, and the present confluence of signals suggests that PENGU is well-positioned if the broader market remains stable.
Pudgy Penguins’ current price is $0.01169, down -3.86% in the last 24 hours. Source: Brave New Coin
Final Thoughts
The technical picture is improving across multiple timeframes, and analyst signals are starting to align in a way that hasn’t been seen for weeks. If the market remains steady and buyers continue to defend the current base, PENGU Pudgy Penguins has a real chance to extend this early momentum into a broader recovery phase.