PENGU Token Enters the Crypto Scene with a Bang, Following One of the Most Successful Airdrops in History

The airdrop rewarded holders of its Non-Fungible Token (NFT) with roughly $60,000.

The Pengu token price has started a sharp rally since April 9, following a 92% decline.

The main question is: Has Pengu started a bullish trend reversal that will take it to a new all-time high, or is the pump just a relief rally in response to the massive decline?

What's Behind the Pengu Pump?

The Pengu technical analysis shows that the price fell by 92% since its all-time high of $0.047 on Jan. 6, falling to an all-time low of $0.003 on April 9.

Pengu reversed its trend afterward and has pumped by 25% since, reaching a high of $0.013.

During its ascent, Pengu broke out from a descending resistance trend line that had existed since the time high, signifying that the correction had ended.

Moreover, Pudgy Penguins reclaimed the $0.007 horizontal resistance area and now trades inside the $0.013 one.

If the price of Pengu breaks out, the next resistance will be between $0.020 and $0.024, created by a horizontal and Fibonacci retracement resistance.

Pengu's all-time high is another 270% increase away, but technical indicators are showing overbought conditions.

The Relative Strength Index (RSI), at an all-time high of 83, perfectly illustrates the overheated rally.

The daily Moving Average Convergence/Divergence (MACD) is also near an all-time high.

However, there is no bearish trend divergence toward an imminent trend reversal.

As a result, it is unclear if Pengu will break out above $0.013 or get rejected.

Pengu's Overheated Rally

The wave count gives a bullish Pudgy Penguins price prediction, though it suggests that a local top is close.

According to the count, Pengu completed a five-wave downward movement after its all-time high (red) and has now started a five-wave upward movement.

The Pengu pump is not an A-B-C corrective structure. Wave three exceeds wave one more than 2.61 times, causing a significant discrepancy.

Since there is no clear bearish divergence, wave three may extend even further, targeting the 3.61 and 4.61 extensions at $0.014 and $0.016, respectively.

Nevertheless, Pengu could soon reach a local top, beginning a corrective wave four.

Afterward, wave five could end at the 0.382 Fibonacci retracement resistance level at $0.020.

A Pengu decline below the wave one high at $0.006 will invalidate this bullish prediction.

The Pengu price increase since April 9 has been extremely impressive, clearing diagonal and horizontal resistance levels.

While indicators are showing overheated conditions, there is no evident weakness to warn of an impending bearish trend reversal.

The wave count suggests that a short-term decline could occur, but the long-term trend is still bullish.