PENGU crypto jumps 50% – Traders, here’s the real support you should watch!

Key Takeaways

• PENGU crypto rallied 50% on Bitcoin’s breakout, but rising sell pressure and bearish divergences hint at a possible short-term retracement. Liquidity maps show $0.0225 and $0.0175 as key zones for next price moves.

Pudgy Penguins [PENGU] rallied 50% from its low of $0.0143 on the 7th of July.

The Fibonacci extension levels plotted the $0.02 and $0.026 as the 23.6% and 61.8% extension levels, respectively.

The first target has been met, spurred by Bitcoin [BTC] making a new all-time high.

Source: PENGU/USDT on TradingView

The 1-day chart showed strong bullish impetus.

In late June, when PENGU token prices soared above $0.0125 local highs, it left behind a sizable fair value gap (white box). It was expected that this gap would be retested as a demand zone before the rally continued.

Instead, aggressive bullish demand, combined with Bitcoin’s euphoric breakout, prevented the revisit.

The CMF backed this with strong capital inflows, maintaining consistent readings above +0.05 throughout July. On top of that, the MFI rose in tandem with the price.

Yet, cracks may be forming—a bearish divergence hinted at a possible cooldown.

Were there any other threats to the PENGU crypto rally?

Source: CryptoQuant

The technical analysis showed that the uptrend was intact, although there was potential for a price dip toward $0.0175. The spot taker CVD data of the past three months showed that selling pressure from profit-taking activity was increasing in July.

Likely due to the swift price rally, holders might be tempted to book profits.

The rally tempted many to lock in profits, shifting the market into a Taker Sell Dominant phase above $0.02.

Northbound pull, but watch your step

Source: CoinGlass

The recent liquidation data showed that PENGU crypto might be pulled higher in the coming days. The $0.0225-$0.023 area was a magnetic zone of interest above the market price.

To the south, the liquidity clusters were not as strong until the $0.018 area.

Hence, these were the two supply and demand zones for the PENGU token, shortly. A retracement toward $0.0175 could provide a buying opportunity.

Yet, as we saw with the fair value gap, buyers might not see sizeable price dips due to the bullishness across the market, and behind PENGU.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion