The Pudgy Penguins Airdrop Was Extremely Successful

The Pudgy Penguins airdrop was extremely successful, causing PENGU to debut in the top 70 largest cryptocurrencies based on market capitalization.

The price of Pudgy Penguins (PENGU) has fallen to a new all-time low but has since bounced, breaking out from a key resistance trend line.

The price of Pudgy Penguins (PENGU) has fallen to a new all-time low but has since bounced, breaking out from a key resistance trend line.

The Pudgy Penguins airdrop was massively successful, launching PENGU in the top 70 largest cryptocurrencies by market capitalization. At the time, Pudgy Penguin holders received roughly $60,000 PENGU for each NFT in their collection.

However, the price of PENGU has since fallen sharply, and the same airdrop is now worth roughly $12,000. Similarly, the Pudgy Penguins NFT floor price has crashed from its all-time high of 27 ETH to 9.18.

As the price of PENGU fell to a new all-time low on March 11, it bounced, breaking out from a key resistance trend line. With that in mind, let’s analyze the price action and see if this increase will continue.

PENGU Price Analysis

The price of PENGU has fallen below a descending resistance trend line since its all-time high of $0.046 on January 6. The decline culminated with a new all-time low of $0.0050 on March 11.

The price of PENGU bounced afterward, breaking from the resistance trend line on March 14. However, PENGU trades below the $0.007 horizontal resistance area. The price of PENGU needs to break out and create a higher high. Rather, PENGU still trades close to its breakout level.

A successful breakout would take the price to the next horizontal resistance at $0.0105.

Technical indicators show bullish signs. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences, a sign often preceding bullish trend reversals.

However, it is worth mentioning that the divergences have developed since February and have not led to anything significant. So, the daily time frame price action and indicator readings do not confirm the trend’s direction.

Will Pudgy Penguins Price Bounce?

Similarly to the price action, the wave count does not confirm the direction of PENGU’s trend. However, it leans bullish, suggesting an upward movement is slightly more likely.

The price of PENGU has completed a five-wave downward movement (red) with an extended third wave. The hesitation comes from the fact that wave five may extend further, taking PENGU to new lows.

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Nevertheless, the primary scenario is a completed five-wave decline. If so, PENGU has started an A-B-C structure, taking it to the $0.0105 horizontal resistance area. Since the long-term trend is bearish, the price of PENGU will likely fall afterward.

Alternatively, if wave five extends, the price of PENGU could reach a new all-time low at $0.0037. The 1.61 external Fibonacci retracement of the recent upward movement creates this target.

The price of PENGU is at a critical juncture since it has cleared its main diagonal resistance but is trading below the main horizontal resistance area. While the price action is undetermined, the wave count leans bullish.

The future trend will depend on whether PENGU breaks out above its horizontal resistance or falls under its descending resistance trend line instead.