Pudgy Penguins price has fired on all cylinders this year, and is one of the best-performing altcoins. It has surged by over 900% from its lowest point this year, becoming a $2 billion juggernaut.
However, there are signs that the strong PENGU price surge is nearing its end as Bitcoin Penguins (BPENGU) gains momentum.
PENGU Price Risky Pattern Points to a Crash
The two-hour chart indicates that the PENGU price has formed a highly bearish double-top pattern, suggesting an eventual decline in the coming weeks.
It formed this pattern at the all-time high of $0.0457 and a neckline at $0.0358, its lowest level on July 25. This pattern often leads to a strong bearish breakout, as it signals that bulls are hesitant to buy above that price.
The price target of a double-top pattern is found by first finding its height by subtracting the neckline from the double-top point. In this case, the height is about $0.01.
The next stage is to subtract this figure from the neckline, giving it a target price of $0.0285, which is about a 28% drop from the current level. This crash will be confirmed if the price drops below the neckline at $0.035.
The bearish PENGU price forecast is also attributed to the concept of mean reversion. Although the price has dropped sharply from its year-to-date high, it remains significantly higher than the 200-period moving average.
Mean reversion refers to a situation in which an asset returns to its historical averages after deviating substantially from them.
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A New Star is Born: Bitcoin Penguins
A potential reason for the PENGU price crash is that investors have rushed to invest in Bitcoin Pengu, which positions itself as a superior token. Launched on Monday, July 28, it has already raised nearly $1.3 million.
Crypto investors have rushed to BPENGU for three main reasons. Historically, new animal-themed tokens emerge after the success of the initial one. For example, Shiba Inu has become a $7 billion token after the success of Dogecoin. More frog tokens have come up after Pepe’s success.
Second, Bitcoin Penguin’s token sale differs from others in several ways. For example, it is not an open-ended sale in that it will be listed within the first 30 days or when it hits the $10 million fundraising milestone. Chances are that the listing will happen before the 30 days end.
It is also different in that the team has allocated itself just 3% of the tokens, making it a community project. Additionally, early buyers will generate a considerable return during the token sale process. The initial price is $0.0010, while the final one before listing will be $0.00198.
BPENGU price could explode higher after its token listing, as it will happen during the ongoing crypto bull run.
As we have written before, the Bitcoin price is poised to break out, with BlackRock predicting it will reach $700,000 and Ark Invest anticipating it will hit $2.4 million. Such a move will fuel the fire in the crypto market, boosting top altcoins like BPENGU.
Click here to visit the Bitcoin Penguins website and buy BPENGU.
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