PENGU Flashes TD “9” Buy Signal at Key Support, Here’s What Analysts Are Watching Next

PENGU flashes TD “9” buy signal while holding trendline support near $0.03600 demand zone.

RSI shows bullish divergence, signaling fading selling pressure and possible recovery ahead.

On-chain metrics surge as holders hit 563K and trading volume surpasses Dogecoin in key markets.

Pudgy Penguins (PENGU) is showing early signs of a potential recovery after recent declines. The price has found support at the lower boundary of a descending channel, while several bullish technical indicators point to a possible upward move. At the time of writing, PENGU was trading at $0.03760.

Bullish Indicators Suggest Recovery May Be Near

According to analysis prepared by market analyst Ali Charts, PENGU is flashing a TD Sequential “9” buy signal. This signal is commonly used to identify possible trend reversals. Additionally, PENGU is holding its trendline support and consolidating near a key demand zone between $0.03600 and $0.03660.

The RSI indicator is also showing a bullish divergence. While the price made lower lows inside a descending wedge pattern, the RSI moved higher from under 30 to around 50. This suggests that selling pressure is decreasing and buyers are starting to gain strength.

The current setup mirrors previous patterns where the price rebounded sharply after hitting this support zone. A move above $0.03840 could confirm a short-term recovery and may attract additional volume.

Price Targets and On-Chain Activity Supporting Outlook

If the upward momentum continues, resistance levels around $0.04100 and $0.04500 could be tested. According to an observation by analyst Lennaert Snyder, a break above $0.04300 with strong volume may open a path toward $0.07300. This aligns with a Fibonacci extension from a recent price impulse.

Source: LennaertSnyder(X)

Meanwhile, on-chain data supports growing interest. PENGU has reached 563,000 holders and logged 20,000 daily active addresses. As noted by Niels, derivatives and spot volume for PENGU have outpaced Dogecoin across some exchanges.

The price is currently above the 20-day moving average, which supports the short-term trend. Coming to the MACD, although there is a slowdown on the momentum, the structure holds. Traders are watching $0.03600 closely as the key level to hold for the bullish setup to remain valid.

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