Key Insights:
- TD Sequential indicator is indicating a potential price reversal in the PENGU, with a buy signal flashing.
- With the support of $0.017 intact, analysts predict a maximum rebound of 30%.
- The accumulation and oversold conditions indicate that a buyback period may begin in the near future.
PENGU price could be close to a turning point after a sharp correction. Meanwhile, technical indicator signals growing potential for a rebound. However, analysts caution that confirmation lies in a holding of crucial support near $0.016.
TD Sequential Indicator Hints PENGU Price Bottomed
Market analyst Ali shared that PENGU price flashed a buy signal on the TD Sequential indicator. The tool measures market exhaustion and therefore often appears near reversal points after prolonged downtrends.
This signal emerged as PENGU tested the $0.016 level, accompanied by significant buying interest. Historically, similar TD setups have preceded significant price recoveries when momentum returned. The chart indicates a completed “9” count, which suggests possible exhaustion among sellers.
Ali explained that the market could change if buyers defend the current zone. A break above $0.017 would also confirm the setup and strengthen the bullish sentiment. The next target for bulls is near $0.019, with the higher resistance forming around $0.022.
However, a break below $ 0.015 could negate the buy signal. Such a move may cause even more declines and postpone recovery. Despite that risk, Ali believed that this formation may be the initial stage of a market reversal.
Channel Pattern Signals 30% Upside
Another analyst, Nehal, pointed out a descending channel pattern that was forming the PENGU price action. This structure often occurs when markets consolidate after a correction. It is also a potential accumulation zone.
Nehal’s one-hour chart depicted the price testing the boundary of the channel at around $0.017. From this area, he projected a 30-33% rebound if support is intact. A successful move could push PENGU price to $0.021 in line with the next resistance zone.
He also mentioned that there are early signs of bullish divergence on the Relative Strength Index (RSI). While prices were at new lows, RSI has remained steady, a hint of weakening bearish pressure. Often this pattern is followed by a short-term recovery.
If the volume supports this pattern, traders may experience gradual upside momentum. However, the buying activity should continue to confirm any breakout. Without it, the channel may continue to limit PENGU price upside potential.
Traders Accumulate Near Key Zone
Analyst Heinous appeared bullish on PENGU, noting that the bottom is there or very close. The chart represents PENGU’s market cap, which is currently trading around $972 million, representing a rapid correction from earlier peaks. The structure has regular lower highs and lower lows, but the decelerating momentum suggests the potential for the construction of an accumulation zone around current levels.
Heinous said they are “putting in a little bit more every day to decrease the average entry,” suggesting increasing confidence in a rebound. This analysis is supported by lower trading volume, where declining sell pressure tends to precede the formation of a base. This gradual approach is a classic case of a bearish reversal that is attempting to ride a potential recovery after a positive change in market sentiment.”
In the past, PENGU price has rebounded violently when in a long-term decline. If it holds support around its current level, it could retest the $1.2 billion market cap zone again. Heinous referred to Spengu as “the mascot of crypto,” implying the strength of its community could propel the next rebound once momentum aligns.
Oversold Levels Suggest Buyback Soon
Trader Nick Hellmann commented that the PENGU price had fallen more than 45% from its local peak. He noted that the asset is now trading at heavy oversold levels.
His four-hour chart showed divergence between the price and RSI, and that bearish momentum is fading away. Hellmann is of the opinion that this condition increases the likelihood of a buyback phase soon. “There has to be a buyback soon,” he commented.
Hellmann pointed to Fibonacci retracement levels between $0.016 and $0.018 as essential zones. If buyers step in, a relief rally could retest the $0.021-$0.023 range. A strong close above $0.018 would confirm the strength of the recovery.
Still, he said that failure to defend $0.015 could pave the way for deeper losses. For now, traders are watching out for spikes in volume that could confirm institutional accumulation.
Together, these technical signals suggest that PENGU may soon stabilize. Analysts are optimistic that a change in momentum may occur if buying activity continues to increase from current levels.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
