- The PENGU price offers a decisive breakout from the resistance trendline of a bull flag pattern.
- The recently launched Pudgy Party mobile games have gained significant traction from U.S. users, bolstering the token value of Pengu.
- The coin price positioned above the 20-50-100-and-200-day exponential moving average indicates a strong bullish sentiment in the market.
PENGU, the utility token of Pudgy Penguins NFT, jumped over 10% during Monday’s U.S. market hours to trade at $0.03. While the intraday jumps align with the broader market relief rally, the Pengu price gained additional momentum as its recently launched mobile game gained significant traction among U.S. users. The rising price offers a decisive breakout from the resistance trendline of a key continuation pattern, signaling its potential for a higher rally.
Pudgy Penguins’ Expansion Fuels PENGU Token Growth,
Messari’s report highlights a rapid transformation of Pudgy Penguins as a major catalyst in the rally of its token, PENGU. The most recent analysis on the research site identifies a cascade of events that have all contributed to creating market excitement, driving the value of the token over 175% in the last three months.
Pudgy Party is a mobile game that is at the heart of this momentum and immediately topped the Apple Racing charts in the United States. With over 70,000 installs worldwide, the game features 20 playable penguin characters in a unique racial format. It has no onboarding barriers, unlike most blockchain games: users do not need crypto wallets or NFTs, though it uses Polkadot on the back end to provide blockchain capabilities.
Another stimulus has been the in-game economy. As Messari highlights, rare skins have spiked dramatically in value. The Power Pudgy cosmetic, one of only 250, went for about $300 just a few weeks ago and now has an almost $5000 resell value today.
Moreover, the strategic partnership with OpenSea, Lufthansa, NASCAR, and Walmart put Pudgy Penguins in the Web3 market alongside aviation partnerships, motorsport branding, and physical retail through toy distribution. These partnerships give the brand the visibility that is unfamiliar to a project based on NFTs.
Messari was also interested in the brand’s presence on social media. Pudgy Penguins now has over 730,000 Twitter followers (X) and has received tens of billions of views using its GIF library. With a base of over 800,000 wallets, the project is increasingly perceived as a cultural brand rather than a blockchain experiment, particularly as adoption grows in Asia.
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Flag Pattern Sets PENGU Price for a 46% Breakout Rally
Over the past six weeks, the PENGU coin price witnessed a significant correction from $0.046 to $0.0275, registering a 40% loss. The downtrend likely follows a broader crypto market pullback amid the increasing uncertainty surrounding the September interest rate cut by the U.S. Federal Reserve.
However, the PENGU price resonated strictly within the two converging trendlines of a bullish continuation pattern called ‘Flag.’ The chart setup is characterized by a long ascending pole representing the dominating trend in price, followed by a brief pullback within two downsloping trendlines to recoup the exhausted bullish momentum.
Amid the recent market recovery, the PENGU price provided a decisive breakout from $0.0285 to $0.0338, projecting an 18.5% jump. This upswing managed to reclaim the 20- and 50-day exponential moving averages and also provided a decisive breakout from the flag button resistance. An upward incline in these EMAs accentuates the renewed bullish sentiment in the short-term trend.
If the post-breakout retest manages to hold above the breached trendline, the resulting rally could push the price over 46% to re-challenge the last swing high of $0.046.
On the contrary, if the price retest re-enters the flag range, the selling pressure could accelerate and force a bearish breakdown below the 100-day EMA support.
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