PENGU price went parabolic on Wednesday, making it one of the best-performing tokens in the crypto industry. Pudgy Penguins rose to $0.012, its highest level since November 20, and 30% above its lowest level this year.
Why PENGU Price is Rising Today
The token surged as the crypto market recovery happened, with Bitcoin and most altcoins rising. Bitcoin price rose to $92,500, while the market cap of all tokens jumped to over $3.1 trillion.
Pudgy Penguins token also rallied, as third-party data shows investors moved tokens off exchanges. According to Nansen, 190 million tokens were removed from exchanges over the last 24 hours. There are now 19.28 billion tokens, down from 19.47 billion on Tuesday.
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Moving tokens from exchanges is a sign that investors are buying. It is also a sign that the recent selling momentum is starting to fade.
At the same time, whale investors have been accumulating these tokens. They now hold 1.88 billion PENGU tokens, up sharply from the November low of 852 million. Whale buying is one of the most common approaches in fundamental analysis.
Still, Pudgy Penguins’ performance in the non-fungible token (NFT) industry has deteriorated slightly over the past few months. Data shows that transaction volume dropped by nearly 60% over the last 30 days to $12.9 million.
This made it the third-biggest NFT collection in this period after DMarket and Algebra Positions. Pudgy Penguins sales have dropped by 12% in the last seven days to $2.6 million, bringing that all-time sale figure to over $742 million.
Pudgy Penguins Price Rose After Forming a Falling Wedge Pattern
Technicals also explain why the PENGU price has rebounded in the past few days. This recovery occurred after the token formed a giant falling wedge on the daily chart.
A falling wedge is made up of two descending and converging trendlines. In this case, the upper side linked the key swings from September 18, while the lower line connected the lowest swings since August 2.
The Pudgy Penguins token has also formed a bullish divergence pattern, as the MACD indicator’s two lines have started pointing upwards. The Relative Strength Index (RSI) has also moved from the oversold range of 30-45 today.
Therefore, the PENGU price will likely continue rising as bulls target the next key resistance level at $0.015. A drop below the $0.0096 support level will invalidate the bullish outlook.
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