Pudgy Penguins Soar 230% in April—Is This NFT Bubble 2.0 or Just Getting Started?

PENGU’s explosive rally has traders buzzing—and skeptics rolling their eyes at yet another ‘utility’ play in the speculative circus of crypto collectibles.

Key drivers: Meme hype meets scarcity mechanics, because nothing fuels a bull market like digital birds with backstories. Liquidity pumps from influencer shills? Check. Exchange listings timed perfectly? Obviously.

What’s next: Either a retracement that wipes out paper gains (remember Squiggles?) or a moonshot toward ATHs as degenerate capital rotates into ‘blue-chip’ NFTs. Pro tip: Watch whale wallets, not Twitter threads.

Closing thought: In a market where JPEGs outperform most altcoins, maybe the real utility is exposing how thin the line between ‘community’ and ‘cult’ really is.

Source: PENGU/USDT, TradingView

Pudgy Penguins’ U-turn

For swing traders who scooped PENGU at its April lows, the 230% gains could be tempting for profit taking. In fact, the daily RSI entered the overbought zone, suggesting that a cool-off or retracement could be likely. 

If so, the price imbalance and fair value gap (FVG) above $0.010 (cyan) may be key support and potential buying opportunities. 

Source: PENGU/USDT, TradingView

Additionally, the $0.009-$0.013 zone was a key price range in February. And, a similar formation could be repeated if PENGU’s uptrend cools off. 

A tell-tale sign for sustained upward momentum would be the OBV (On Balance Volume) surging above the February-April resistance level. However, in case of an OBV rejection at the resistance, PENGU could slide to the FVG zone. 

On the contrary, the aforementioned projection would be invalidated if PENGU climbs above $0.013. This would happen if BTC surges beyond $100k. In such a scenario, $0.017 would be the next bull target. 

On-chain signal strength

Source: Santiment

From an on-chain perspective, the recent upswing has been strong and sustainable. The social volume hit a new monthly high. In addition, the overall weighted sentiment hit record positive levels too. 

Collectively, the indicators suggested that PENGU has massive market interest and speculators are bullish on its price prospects.

In conclusion, PENGU’s on-chain data revealed the rally is still strong. The price chart indicated the uptrend could be extended if trading volume (OBV) expands. Otherwise, a price reversal or cool-off could likely be due to the overbought condition on the daily RSI.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion