Pudgy Penguins (PENGU) Retesting Key Breakout – Will It Bounce Back?

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. Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.