A ‘9’ candle is printed on the 1H chart, typically marking local bottoms and signaling trend exhaustion.
PENGU is bouncing from the $0.03675 zone, aligning with the lower boundary of a descending channel.
RSI shows higher lows while price made lower lows, indicating weakening bearish momentum and potential reversal.
Pudgy Penguins’ native token, PENGU, is showing early signs of a possible rebound following a steep seven-day slide. The token, which currently trades at $0.0375, declined by approximately 15% in the past week. However, fresh technical signals now suggest the asset may be preparing for a short-term recovery.
Over the last 24 hours, price action has shown signs of stabilization at a key support zone, while momentum indicators also point to a possible reversal. The short-term setup presents a case worth monitoring closely as the market enters a new trading session.
Support Zone Holds as TD Sequential Prints a Buy Signal
One of the most notable developments is the appearance of a TD Sequential ‘9’ buy signal. This often coincides with a potential bottom or exhaustion in selling pressure. This signal has emerged precisely as the price touches the lower boundary of the descending channel, which has acted as dynamic support throughout the week. At the same time, price is respecting the setup trendline, a structure that has previously helped reverse downward momentum.
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Additionally, the $0.03675 zone continues to hold as a horizontal support level. The current rebound attempt coincides with the price reacting from this area, providing further technical validation. Market participants have often used such levels as a pivot point, particularly when momentum indicators align with price structure.
RSI Divergence Signals Potential Reversal as PENGU Finds Strong Support
Adding to the bullish context is a clear divergence on the Relative Strength Index (RSI). While the price recently made lower lows, RSI formed a higher low. This divergence may point to a slowing of bearish momentum. It also reflects strengthening internal conditions relative to price action. Historically, these RSI setups often coincide with local bottoms, especially when confirmed by chart structure.
The RSI has now turned upward, further supporting the rebound narrative. This development occurred just as PENGU hit the confluence of both horizontal and dynamic support zones. The synchronization between RSI behavior and price structure further builds the technical case for a continuation higher.
Resistance at $0.04056 Becomes Immediate Target If Recovery Holds
With early rebound signs in place, the immediate level to watch stands at $0.04056. This resistance previously acted as a rejection zone during multiple retests. The dotted projection path on the hourly chart outlines a potential climb toward this level, should momentum continue building.
For this to play out, price would need to hold above the $0.03675 support in the near term. Any break below may invalidate the current setup. However, maintaining the trendline and RSI trajectory could fuel a possible retest of $0.04300 and beyond.
