Date: Tue, Oct 28, 2025 | 06:10 AM GMT
The broader cryptocurrency market is cooling off after its recent rally, as Bitcoin (BTC) and Ethereum (ETH) slipped into the red. ETH is down by more than 3%, applying short-term pressure on several altcoins — including Pudgy Penguins (PENGU).
While PENGU has dipped nearly 8% today, the bigger picture suggests this might not be entirely bearish. Instead, the token appears to be retesting a crucial breakout zone — a technical moment that could shape its next move, either a sharp rebound or an extended cooldown.
Source: Coinmarketcap
Retesting the Falling Wedge Breakout
On the 4-hour chart, PENGU has been trading inside a falling wedge pattern — a classic bullish reversal setup that often signals the end of a downtrend and the start of a new upward cycle.
After forming a solid base around $0.01938, buyers stepped in and sparked a reversal, pushing the token above the wedge’s resistance line near $0.02152. This breakout marked the first major technical shift since mid-October.
Pudgy Penguins (PENGU) 4H Chart/Coinsprobe (Source: Tradingview)
Following the breakout, PENGU rallied to a local high of $0.02329, where profit-taking briefly slowed momentum. As the chart now shows, PENGU is retesting the breakout area near $0.021, which aligns closely with the wedge’s former resistance — now acting as potential support.
What’s Next for PENGU?
The near-term outlook for PENGU depends on how the price behaves near the $0.020-$0.021 trendline support zone. If buyers successfully defend this level, the token could regain upward traction and target its 100-hour moving average (MA) around $0.02229.
A strong breakout above this region — coupled with volume confirmation — could propel PENGU toward the next technical target near $0.02697, representing a potential 27% upside from current levels.
On the other hand, failure to hold the breakout zone could push PENGU back inside the wedge structure, weakening short-term momentum and delaying a bullish continuation.
