- Weekly TD Sequential and RSI divergence suggest selling pressure is fading.
- Bull flag structure signals potential breakout toward the $0.015 resistance zone.
- Smart money selling adds risk but does not invalidate the bullish setup.
Pudgy Penguins — PENGU, has started to show genuine strength after several difficult weeks. Price action no longer reflects panic selling or forced exits. Instead, the chart now shows patience from buyers and hesitation from sellers. This shift feels important because sentiment often turns before price follows. While volatility remains elevated, the overall structure suggests the market may be preparing for a meaningful change. Early signals now point toward a potential recovery phase.
Higher-Timeframe Signals Hint at a Market Bottom
One of the most important developments appears on the weekly timeframe. Analyst Ali Martinez recently identified a TD Sequential buy signal. This indicator often appears when trends reach exhaustion. In many historical cases, similar signals marked the early stages of recoveries or extended relief rallies. Price action supports this interpretation. PENGU continues to consolidate between the $0.010 and $0.011 region.
This range has absorbed repeated sell attempts without collapsing. Sellers push lower, yet momentum fades quickly. Buyers continue to step in sooner with each decline. Recent weekly and daily candles show long lower wicks. These wicks signal active demand at lower levels. Market participants defend this zone with consistency. Such action usually reflects accumulation rather than distribution.
Memecoins often recover sharply once accumulation completes.This base formation carries added importance. Previous cycles show that prolonged consolidation after steep declines often leads to fast upside expansions. Once fear fades, price tends to move with urgency. The current structure mirrors earlier setups that produced aggressive rebounds across similar tokens.
Lower-Timeframe Structure Strengthens the Bullish Case
Lower timeframes also reveal growing alignment. Analyst Pick highlighted a four-hour bull flag forming between roughly $0.0108 and $0.0122. This zone has acted as a recurring rotation point during recent sessions. Price continues to compress within this structure. The flag formed after a rebound from the $0.0095 to $0.010 demand region. That rebound followed a clear rejection of lower prices. Bull flags often resolve in the direction of the prior move.
A confirmed breakout could send prices toward the $0.0135 to $0.014 reaction area. Momentum indicators add confirmation. Analyst Richie noted a bullish divergence on the daily RSI. Price printed lower lows near $0.0090. RSI formed a higher low during the same period. This divergence often signals selling pressure exhaustion. An engulfing reversal candle strengthens the setup further. When combined with the bull flag and RSI divergence, the chart shows rare confluence. Multiple indicators now point toward potential continuation.
Data from Stalkchain revealed notable smart money selling during a recent twenty-four-hour period. PENGU ranked among the most sold assets during that window. This behavior does not invalidate the bullish structure. Early reversals often include distribution before expansion. Large players frequently reposition ahead of larger moves. Still, this activity increases uncertainty.
