Analyst Warns that Pudgy Penguins (PENGU) Price Rally May Be Slowing – Here’s What Could Stop It
Pudgy Penguins is back in the spotlight this week as the price edges closer to a key resistance level after a strong run-up. The token is approaching levels it hasn’t seen since its last major peak, and that’s got traders paying attention.
One of them, crypto expert Sjuul from AltCryptoGems, pointed out a major area on the chart that could decide where PENGU price goes next.
Looking at the PENGU chart, price is pushing up against a horizontal resistance zone that lines up with previous highs. Traders often call this the neckline, and right now, it’s the level everyone’s watching. It could either stop the rally in its tracks or, if broken with momentum, clear the way for another leg higher.
In his tweet, Sjuul urged caution. He noted that while the setup still looks bullish overall, this zone is a potential turning point. Without strong buying volume, the uptrend could stall here, at least in the short term.
PENGU Chart Pattern Structure Builds Over Time
The chart outlines a familiar structure made up of a rounded bottom followed by a downward-sloping consolidation. Pudgy Penguin price has already broken out of the handle-like channel and is now testing the next resistance. If the level holds, traders may look for a pullback or retest of previous support zones.
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However, if the price breaks above and confirms the move with a retest, the pattern suggests continuation could follow. Targets are generally calculated by projecting the depth of the rounded base from the breakout point.
Moreover, the overall trend remains upward, supported by higher lows and recent breakout strength. Momentum indicators have not shown major signs of exhaustion, though many will look for volume to confirm any move through resistance.
With structure still intact, traders are focused on whether PENGU price can push beyond this level. A confirmed break could reinforce the bullish setup, while rejection may bring short-term pressure.
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