PENGU's 500% Surge Faces Critical Test: Is the Bull Run Losing Steam?

PENGU Rockets 500%: Is the Parabolic Rally Finally Over?

PENGU, the token linked to the Pudgy Penguins NFT collection, has thrilled crypto traders with a dramatic surge, posting nearly 500% gains since late June. After rebounding from bearish territory on June 22 at just $0.007737, PENGU soared to an all-time high of $0.046608 by July 23. This meteoric rise drew significant attention from the cryptocurrency community, fueling speculation over the memecoin’s long-term prospects.

 

Technical Indicators Flash Caution for PENGU Investors

Despite its impressive ascent, several technical signals now indicate the PENGU rally may be running out of steam. Chief among these is a bearish divergence seen on the Relative Strength Index (RSI): while PENGU's price set new record highs in late July, the RSI marked lower highs, suggesting that bullish momentum is faltering.

Typically, divergences like these are early warning signals for crypto assets—especially after such steep rallies. This situation is compounded by the fact that PENGU has failed to establish a new higher low on its recent pullback, instead reverting back to a previous support level. This disrupts the strong uptrend pattern of consistent higher highs and higher lows that drove the rally.

Key Price Levels: What Comes Next for PENGU?

PENGU's price currently hovers just above its ascending trendline and the 20-day Exponential Moving Average (EMA). Both these levels now act as crucial support. If PENGU breaks decisively below this support zone—especially accompanied by an RSI below 60—it could confirm a shift in trend, paving the way for a deeper retracement.

While the overall Pudgy Penguins ecosystem still enjoys bullish sentiment, caution is warranted for traders and holders. If support levels hold firm, PENGU could see a renewed push higher. However, the recent technical clues suggest a risk of correction looms ahead for this high-flying memecoin.