Is Further Downside Still on the Table?

• Pudgy Penguins is trading around $0.01001.
• PENGU’s daily trading volume is at $118M.

With the fear sentiment hanging around the crypto assets, the price movement displays both red and green waves. The broader market awaits a steady upside motion, which could trigger a rally. The largest asset, Bitcoin, hovers at $89.6K, and Ethereum, the largest altcoin, trades at around $2.9K. 

Meanwhile, Pudgy Penguins (PENGU) is riding on the bears, with a 0.28% spike. The asset’s daily lowest and highest trading ranges fall between $0.009669 and $0.01021. If the brief uptick gains more traction, the bulls could strengthen and take the price toward recent key highs. Whereas, a downside move of PENGU would invite more losses.

As per the reporting of the CoinMarketCap data, at the time of writing, Pudgy Penguins traded within the $0.01001 range, with the market cap reaching $629.48 million. Besides, the 24-hour trading volume of PENGU has soared by over 11.98%, touching the $118.48 million mark. 

PENGU’s current negative trading pattern might trigger its price to slip toward the support at around $0.009961. Upon the bearish correction intensifying, the death cross could emerge, and the bears drive the price to a key zone at $0.009882 or even lower. 

On the upside, assume a reversal with the bullish entry, the Pudgy Penguins price could move up to its resistance near $0.01011. If the bullish pressure is building up the momentum, the golden cross might form, likely sending the asset’s price above $0.01022. 

Momentum Fades for Pudgy Penguins as Technicals Lean Bearish

Pudgy Penguins’ Moving Average Convergence Divergence (MACD) line and the signal line are found below the zero line, which indicates bearish momentum. The short-term price action is weaker than the long-term trend. Unless the lines start moving back above the zero line, the downside pressure may continue.

Moreover, the Chaikin Money Flow (CMF) indicator of PENGU at 0.11 is slightly bullish, with mild buying pressure. More capital is flowing into the asset than out, not very strong, and suggests weak accumulation rather than a decisive bullish move. Also, a sustained value above zero would strengthen the bullish scenario.

The Bull-Bear Power (BBP) reading of Pudgy Penguins is stationed at 0.000084 implies a near-neutral condition, with no strong momentum on either side. The market lacks confidence right now, and a clearer trend may only emerge if this value moves decisively higher or lower. 

Furthermore, PENGU’s daily Relative Strength Index (RSI) staying at 44.34 hints at neutral-to-bearish sentiment. As it is below 50, the sellers have a slight edge. Notably, there is room for further downside or consolidation, and a push back above would shift the momentum bullish.

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