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

PENGU is exhibiting signs of a potential recovery after recent declines, finding support near the $0.03600 demand zone. The price is currently trading at $0.03760.

Bullish Indicators Suggesting a Possible Rebound

Market analyst Ali Charts notes that PENGU is flashing a TD Sequential “9” buy signal, a common indicator of potential trend reversals. The price is also holding its trendline support and consolidating near the crucial demand zone between $0.03600 and $0.03660.

The Relative Strength Index (RSI) is displaying a bullish divergence. Despite the price making lower lows within a descending wedge pattern, the RSI has moved upward, suggesting diminishing selling pressure and increasing buyer interest.

This setup mirrors previous patterns where the price rebounded significantly after reaching this support zone. A move above $0.03840 could confirm a short-term recovery and potentially attract more volume.

Price Targets and On-Chain Activity Reinforce Positive Outlook

Should the upward momentum persist, resistance levels around $0.04100 and $0.04500 could be tested. Analyst Lennaert Snyder suggests that breaking above $0.04300 with strong volume could pave the way towards $0.07300, aligning with a Fibonacci extension from a recent price surge.

Source: LennaertSnyder(X)

Furthermore, on-chain data indicates growing interest. PENGU has reached 563,000 holders and recorded 20,000 daily active addresses. Niels points out that PENGU's derivatives and spot volume have surpassed Dogecoin on certain exchanges.

The price is currently above the 20-day moving average, supporting the short-term uptrend. While the Moving Average Convergence Divergence (MACD) indicates a slight slowdown in momentum, the overall structure remains intact. Traders are closely monitoring the $0.03600 level as a crucial support to maintain the validity of the bullish setup.