Pudgy Penguin [PENGU] has jumped by almost 9% since it was listed on SoFi on the 20th of October. The SoFi listing of this token could bring new interest to a token that has been struggling with losing value over several months.
Notably, this rally comes after weeks of selling pressure pushed PENGU from $0.0112 toward $0.00706, where buyers repeatedly defended support.
Later on, the price moved toward $0.00807. This is where buyers were able to reverse the momentum and cause the price to begin moving upward again.
However, at this point PENGU has still not broken through the larger downtrend. As of writing, PENGU was trading near its previous high of $0.0085. This previous high also served as a strong support price before being breached in early October.
The SoFi listing has created enough renewed interest in the token so that it is seeing increased buying activity. However, sustained price increases will need to occur for the renewed interest to develop into a prolonged recovery.
PENGU liquidation levels to watch
The current recovery for PENGU may also face a possible price swing. The increase in leveraged trading has increased trading activity around the token. The 24-hour heatmap below shows a major cluster around $0.00830–$0.00835.
If a breakout occurs here, the short sellers who held these positions will be forced to buy back positions to recoup some of the losses.
These forced purchases may accelerate gains and help PENGU challenge the $0.00850 resistance identified in its recent price action. However, the downside risk remains relatively close, as evidenced by the second largest cluster at $0.00790–$0.00795.
If buyer support fails to materialize in this zone, the number of forced long closures could create additional selling pressure towards $0.00780 and ultimately lower levels.
PENGU’s long-term outlook
Beyond the short-term resistance test of PENGU’s price, PENGU will ultimately depend on the long-term ability to sustain demand that reverses the bearish structure in place over time.
If PENGU can gain traction and produce a confirmed weekly breakout alongside growth in volume and spot accumulation. Ultimately, this could result in a potential price move toward the $0.012-$0.015 zone.
In turn, if buyers can reclaim this zone, further upside for PENGU could occur of up to $0.250-$0.340 with participation from the overall market required.
On the other hand, circulating supply remains a challenge, with approximately 70% or 62.86 billion PENGU tokens already in circulation against a maximum of 88.88 billion.
In light of this fact alone, any drop-off in demand for PENGU could cause huge difficulties in allowing PENGU to make significant future gains.
Final Summary
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Pudgy Penguins gained 8.9% after its SoFi listing but faces resistance at $0.00850.
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PENGU could target $0.0120–$0.0150 after a confirmed breakout, while losing $0.00706 risks a drop toward $0.0037.
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