Many leading cryptocurrencies, including Bitcoin (BTC), Dogecoin (DOGE), Hyperliquid (HYPE), and others, have seen minor increases over the past week. However, their gains appear negligible to the double-digit pump that Pudgy Penguins (PENGU) experienced during that timeframe. While many market observers envision further upside for the meme coin, certain technical indicators signal that a short-term cooldown could be next. New ATH on the Way? As of this writing, PENGU trades at around $0.009, up 35% over the last week, while its market capitalization has risen to nearly $700 million. Thus, the meme coin has become the 74th-biggest cryptocurrency. The impressive performance has caught the eye of numerous analysts, many of whom see the recent resurgence as a trampoline for an upcoming bull run. X user KALEO claimed PENGU’s rally shouldn’t come as a surprise, expecting to see a pump towards a new all-time high. Sjuul | AltCryptoGems also chipped in, suggesting that as long as the price holds above the key zone at around $0.008, “we should be good to go.” “The level has been resistance for a long time, so now it should become a strong support,” he added. Whale Factor and Altcoin Sherpa gave their two cents as well. The former described PENGU’s setup as “a textbook reversal in the making,” estimating that Fibonacci levels signal a move toward $0.015 and then $0.02. Altcoin Sherpa revealed having exposure to PENGU, saying, “This is starting to look more and more like a potential active trade.” The Warning Signs Traders eyeing the penguin-themed meme coin should keep a close eye on key market metrics, as the risk of a short-term pullback appears just as visible as the potential for further gains. The token’s Relative Strength Index (RSI) is an evident example of that. Recently, the ratio surged to 70, meaning that PENGU has entered overbought territory and could be due for a correction. The technical analysis tool measures the speed and magnitude of recent price changes and runs from 0 to 100. Conversely, anything below 30 suggests that the coin is oversold and could be interpreted as a buying opportunity. PENGU RSI, Source: RSI Hunter People should also keep in mind that PENGU is a meme coin, and tokens part of that niche are notorious for their volatility. Last but not least, one must be aware that the top 10 holders control roughly 50% of the asset’s circulating supply. Such a high concentration makes PENGU vulnerable to sudden price swings, as these players can manipulate performance through their actions. PENGU Holders Distribution, Source: CoinMarketCap The post Trending Meme Coin Pudgy Penguins (PENGU) Soars 35% Weekly: Is the Rally Just Starting? appeared first on CryptoPotato .
