While volatility remains elevated, the latest structure aligns with conditions that have previously preceded sharp recoveries in meme-driven altcoins.
The strongest development comes from analyst Ali Martinez, who reported a weekly TD Sequential Buy Signal, which is one of the most reliable exhaustion indicators. Historically, this signal appears at moments of trend fatigue, often marking the beginning of a new upside phase or a multi-week relief rally.
PENGU continues to defend the $0.010–$0.011 zone, with a weekly TD Buy Signal hinting at a potential reversal brewing. Source: Ali Martinez via X
Price action supports this reading as PENGU has been basing tightly around $0.010–$0.011, showing diminishing sell pressure and early demand absorption. Long wicks on recent candles reinforce the idea that buyers are quietly returning to defend this zone.
Short-term market structure has also started to look increasingly constructive, with multiple analysts spotting early reversal signals on the lower timeframes. Pick highlighted the development of a 4H bull flag forming between roughly $0.0108 and $0.0122, a zone that has repeatedly acted as the midpoint of recent price rotation. This flag is emerging right after PENGU’s rebound from the lower demand region near $0.0095 to $0.0100, creating a classic setup where a breakout above the flag’s upper boundary could open the door to a quick push back towards the $0.0135–$0.0140 reaction zone.
Pudgy Penguins is carving out a clean 4H bull flag, tightening between $0.0108 and $0.0122 as momentum slowly shifts back toward buyers. Source: Pick via X
Adding to that, Richie pointed out a significant bullish divergence on the daily RSI, with price making fresh lows around $0.0090 while RSI printed a higher low, a strong sign that downside momentum has begun to exhaust.
Daily RSI is printing a clear bullish divergence, signaling momentum exhaustion even as PENGU briefly dipped toward $0.0090. Source: Richie via X
Together, the bull flag on the 4H timeframe, the daily RSI divergence, and the engulfing reversal candle create a tightly aligned cluster of bullish signals, the type of confluence that often precedes multi-day upside attempts. When layered on top of the higher-timeframe TD Sequential buy signal, the alignment becomes even more compelling.
While the technical picture leans constructive, participants should note one caution point: Stalkchain reported that PENGU was the most sold token by smart money in the last 24 hours.
This doesn’t invalidate the bullish setup but serves as a reminder that early reversal phases can be noisy. Smart-money rotation is common before strong trend shifts, but it also means traders should avoid chasing breakouts without confirmation.
Smart-money flow shows PENGU as the most sold token in the past 24 hours, adding a layer of caution to an otherwise constructive setup. Source: Stalkchain via X
For now, the spike in smart-money selling is best treated as a risk signal, not a trend-ending event.
PENGU’s market structure is finally offering a constructive path for recovery, assuming support near $0.010 continues to hold:
If bullish structure holds:
Initial target: $0.013–$0.015 (first liquidity pocket).
Breakout target: $0.017–$0.020 (major supply zone + measured move from bull flag).
Momentum-based rallies in meme-themed tokens often accelerate quickly once liquidity flips, and the present confluence of signals suggests that PENGU is well-positioned if the broader market remains stable.
Pudgy Penguins’ current price is $0.01169, down -3.86% in the last 24 hours. Source: Brave New Coin
The technical picture is improving across multiple timeframes, and analyst signals are starting to align in a way that hasn’t been seen for weeks. If the market remains steady and buyers continue to defend the current base, PENGU Pudgy Penguins has a real chance to extend this early momentum into a broader recovery phase.

