Pudgy Penguins' Price Rally Resembles 2020 DeFi Boom with $0.026 Milestone Approaching

Pudgy Penguins (PENGU) has experienced a notable rally in recent trading, fueled by increased on-chain accumulation, strong technical signals, and heightened optimism in the market. The token recently broke out of a significant falling wedge formation, prompting analysts and traders to set their sights on the $0.026 mark as the next major resistance. This breakout has reignited attention toward the asset, which is currently priced at $0.02139, reflecting a 1.4% gain over the past day, according to a

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Blockchain data indicates a resurgence of smart money entering the market, with leading wallets accumulating more than 2.16 million

in just the last week. This accumulation, primarily by wealthy investors and institutions, coincides with the token’s recent breakout from a cup-and-handle pattern—a well-known bullish continuation signal. The breakout above the neckline in the $0.035 to $0.038 range has been confirmed by rising trading volumes, suggesting buyers are regaining dominance, as also highlighted in the Brave New Coin report. Analysts from ShangoTrades and noms_online point out that the depth of this formation could lead to price objectives around $0.060 and $0.075 if momentum continues.

Technical analysis further supports the bullish outlook. A double-bottom reversal pattern and steady consolidation between $0.013 and $0.018 have set the stage for the recent upward surge. Both the Relative Strength Index (RSI) and increasing trading volume point to growing momentum, while Fibonacci extensions identify $0.0305 and $0.0447 as the next potential targets, according to an

. The AMBCrypto report also observed $863,000 in exchange outflows in late October, indicating that holders are moving tokens off exchanges, which may reduce selling pressure and signal long-term accumulation.

Positive sentiment is also being driven by developments outside the blockchain, such as the Kung Fu Panda partnership and active community involvement led by Pudgy Penguins’ founder, Luca Netz. Increased social media engagement and strong leadership have boosted the project’s profile, drawing attention from both individual and institutional investors. Data from Brave New Coin reveals that PENGU’s market capitalization has surpassed $1.34 billion, with daily trading volumes topping $111 million, reflecting rising liquidity and adoption.

Nonetheless, there are still risks. For the rally to continue, PENGU must remain above the $0.018 to $0.020 support zone. Falling below this range could result in a correction, while a move above the $0.028 to $0.032 resistance could further fuel the bullish trend. Analysts caution—echoing insights from the AMBCrypto analysis—that although the $0.026 target is attainable, sustained growth over several weeks will depend on consistent trading volume and ongoing institutional interest.

At present, PENGU’s price action resembles that of early DeFi tokens in 2020, with a mix of technical, on-chain, and narrative-driven factors creating a promising environment. As the market awaits further developments, traders are watching $0.025 as a near-term resistance and $0.018 as a key support level.