PENGU price is pulling back amid an impressive month-long rally in August owing to increased derivatives trading and the formation of a new partnership with Schleich, keeping the traders’ focus on the potential breakout ahead.
As of the date of writing, the PENGU price is trading at $0.009160, marking a 5.35% fall from the previous 24-hour period. Despite the fall, PENGU is trading above important moving averages, having gained 53.6% in August.
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Why Is There a Pudgy Penguins Price Correction?
According to the daily chart on TradingView, it can be seen that PENGU is ranging after showing a significant rise to the $0.01 level.
It is trading above the support level of $0.007192 and thus maintains the overall uptrend structure despite recent downward pressure on the price.
Also, PENGU is trading above its 20-day EMA of $0.007991 and its 200-day EMA of $0.008286.
The initial resistance level is at $0.009866. The recent high at $0.0105 will be another level to consider. If there is a sustained move above the $0.01 level, then it might help the case of a breakout. If not, then the consolidation could continue.
Also Read: PENGU Price Analysis: Triangle Setup Points to Potential $0.0080 Rally
What Is the Effect of the Schleich Agreement on PENGU Price?
According to the Pudgy Penguins X account, there was an agreement between Pudgy Penguins and Schleich.
The account described the development as “A new chapter for Pudgy Penguins’ European expansion begins with our schleich® partnership” and announced the “schleich® Collectible Figurines Series 1”, which will be released through the Pudgy Penguins Shop.
The Schleich agreement adds another dimension to PENGU. It does not establish increased token demand, but it contributes to the development of the brand in general.
Also Read: PENGU Price Jumps 6.81%: Can Bulls Break $0.0097 Resistance?
Can Pudgy Penguins Price Maintain Its August Surge?
According to CoinGlass figures, trading volume surpassed $500 million in the vicinity of August 24, with open interest also surging to near $150 million.
The rising price alongside higher derivatives volume and open interest indicates increased involvement by market participants in the upward move.
The next major resistance for PENGU will be the region of $0.009866–$0.01. Holding above the $0.008286 level may help maintain its upward trend, while failure to do so will shift focus back to $0.007192.
Cryptocurrency markets are highly volatile, and traders should watch out for price movements and upcoming events before making any investments.
Also Read: PENGU Price Breakout Signals Potential Rally After Key Trendline Reclaim
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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