Friends in the crypto world know that the price fluctuations of altcoins are like roller coasters, thrilling and heart-pounding. Recently, Pudgy Penguins (PENGU) has been very eye-catching, repeatedly testing the 0.039 USD resistance without breaking through; are you all feeling the tension?
Don't rush; today we will help you analyze PENGU's recent market trends in the easiest way possible.
Why has PENGU tested the 0.039 USD resistance multiple times without breaking through?
How is buying and selling power distributed in the market? Are bulls or bears stronger?
Has the liquidation storm arrived? Where is the next key price level?
Does this 'cute penguin' token have a chance to double in the future?
0.039 USD 'iceberg' resistance, tested multiple times but failed to break through.
Imagine you are climbing a mountain, and there is a huge iceberg blocking your way - this is PENGU's 0.039 USD resistance level.
In the past few instances when the price rose to this position, it was blocked by the 'iceberg' and seemed to almost break through but then fell back down; everyone's mood is like eating a sour plum - sour.
But don't forget, icebergs are not insurmountable forever; as long as there is enough 'heat' to melt it, PENGU has a chance to break through this resistance and reach the next high ground.
'Net flow' direction has changed; is buyer pressure back?
Net flow simply means 'money flowing in from buying minus money flowing out from selling'; it's like the blood circulation of the market.
On July 21, net flow surged significantly, indicating that buyers flocked in, providing price support.
However, the net flow then turned negative, indicating selling pressure is a bit heavy, and capital has flowed out.
But don't panic! This repeated washout is like a fitness trainer telling you to 'do another set'; it's helping the market adjust and build momentum for the next rise.
0.042 USD is the next 'key point', a breakout may trigger a wave of short liquidations!
If PENGU can break through 0.039 USD, the next key level to watch is 0.042 USD.
This is a super key 'explosion point'.
Why?
Many short sellers are betting that PENGU won't rise above this line. Once it breaks, they will have to 'quickly close their positions and buy back', which is called 'short liquidation'.
Once the bears are liquidated, selling pressure will decrease, and capital will surge like a dam being opened, causing prices to possibly soar to around 0.05 USD (5 cents).
Bulls are strongly in control; the recent decline is just a 'breather'.
Although PENGU's price has dropped about 2% in the last 24 hours, the 'bulls' still control the market.
Using a simple indicator called 'Bull-Bear Power Index (BBP)' to see market sentiment -
This indicator is still green, indicating that buyers are stronger than sellers, currently hovering around 0.0148, suggesting overall buying interest is still strong.
Since the end of June, BBP has remained positive; even if the price is consolidating below key resistance, this stable bullish power usually means that the current downtrend is just a temporary adjustment, preparing for the next rise.
Simply put: bulls are like penguin mothers, temporarily resting with their chicks, but will continue to move forward.
The liquidation map reveals that bears are a bit anxious; the next trend's key lies in the price.
PENGU is currently priced at approximately 0.036 USD; the liquidation data from the last 7 days tells us:
Bears have accumulated about 10.46 million USD in liquidated leveraged positions.
The leveraged positions liquidated for bulls amount to 10.18 million USD.
Both sides are very close, but bears are slightly at a disadvantage.
This indicates that there is considerable pressure from short sellers in the market; they bet that PENGU will fall, but the actual trend seems to be 'holding up'.
If prices continue to surge, bears may be forced to 'buy back to close their positions', leading to 'forced buying', which further pushes prices up.
PENGU's 'mountain climbing route' looks like this:
Low point: 0.0077 USD.
Previous high point: 0.035 USD.
Retracement point: 0.028 USD.
Using these three key points, the Fibonacci extension tool has calculated the potential 'target price' that PENGU may hit next.
Three key price levels determine PENGU's upward potential.
Currently, PENGU is priced around 0.036 USD, with several 'thresholds' to break through:
0.037 USD - the first small threshold.
0.039 USD - the second 'hardcore' resistance, also the Fibonacci 0.382 level.
0.042 USD - the third key threshold, corresponding to the Fibonacci 0.5 area.
If these three levels are successfully broken, PENGU will open an upward channel, with the initial target set at 0.045 USD, indicating a potential increase of about 25%!
After breaking 0.045 USD, the next target is the super 'Penguin Treasure' - 0.05 USD, which corresponds to the Fibonacci 0.786 level, meaning an increase of 38% from now!
Why are these price levels so important?
Technical analysis tells us that these price levels are not only historical turning points but also key psychological thresholds for the market.
In simple terms:
Bulls treat 0.037, 0.039, and 0.042 USD as 'battle lines'; charging past them boosts morale.
Bears are setting up defenses here, trying to block the upward momentum.
Whether it can successfully break through depends on the strength comparison between bulls and bears.
Revealing the strength of bulls and bears.
Recently, the bear market power has significantly weakened. Although bears are building positions, bulls are still firmly in control.
If the price can turn the 0.035 USD 'resistance' into support, it indicates that bulls have the upper hand, and the trend is healthier.
Conversely, if it breaks below 0.035 USD and continues to slide down to the Fibonacci retracement zone of 0.028 USD, our bullish dream will be shattered, and we must be wary of a bear market resurgence.
Summary
PENGU is brewing a major upward movement; after breaking through the three thresholds of 0.037, 0.039, and 0.042 USD, reaching 0.05 USD is not a dream!
This means if you invest around 0.036 USD, you may have the opportunity to achieve a 38% return in the future.
However, risks also exist; if it breaks below the 0.035 USD support, it may need to turn back.
For those new to cryptocurrency, remember that 'watching trends, understanding risks, and making steady profits' is the hard truth!
