Key Takeaways
Market sentiment has remained bullish across the crypto space, with Pudgy Penguins seeing high sales volumes over the past week. This boosted demand for its token PENGU, which gained by 21% on Monday. According to some estimates, it could rally by another 20% or more.
Pudgy Penguins [PENGU] has rallied by 170% since making a bullish market structure break on the 1-day chart. This occurred on 23 June. Monday, 21 July saw PENGU make additional gains of 21.7%, with technical indicators showing that the rally might extend itself higher.
Source: NFT Price Floor
This move can be explained by the hike in NFT sales volume for the Pudgy Penguins collection. In fact, data showed that there was a sales volume of $9.65 million over the past week. This resulted in a spike in the floor price of Pudgy Penguins, going from below $10 to $16.88 in just under two weeks.
The wider crypto market has also remained bullish. Neither Bitcoin [BTC] nor Ethereum [ETH] saw a sizeable pullback, with ETH actually rallying by 6.5% over the weekend.
Can PENGU continue its rally even if the momentum looks overheated?
Source: PENGU/USDT on TradingView
The 1-day chart captured the strong bullish momentum of PENGU over the past month. It made a bullish market structure break on 28 June, with the altcoin continuing to trend higher since then. The momentum began to slow down over the past week though. The RSI dipped from 87 to 75, as PENGU’s price ranged between $0.03 and $0.035.
Even so, the RSI has remained in overbought territory. Another surge on Monday, 21 July, took PENGU beyond the $0.0361-resistance. The memecoin last traded at this level in January.
Its retest of the same level occurred on the back of high demand for the token. This was evidenced by the rising OBV, which indicated greater buying pressure.
Source: PENGU/USDT on TradingView
The 4-hour chart highlighted the past week’s range more clearly. We can see that the RSI fell to neutral 50 for a few days, and is now back above 70. Moreover, it made a bullish market structure break after rising past $0.035 – The local high. The quick surge higher in recent hours left behind a fair value gap (FVG, white box).
It may be likely that a retest of this FVG as a demand zone would offer a good buying opportunity. The DMI signaled a strong uptrend in motion over the past week, despite the short-term consolidation. Both the ADX (yellow) and +DI (green) were above 20 too.
The next price target for PENGU is the $0.047 resistance, 25% higher than the press time market price. Hence, swing traders can target a 25% move in the coming days.
