[ad_1]
PENGU/USDT Daily Chart (Binance) – Source: TradingView
The daily chart shows that PENGU started to retreat today as it hit a huge order block at around $0.12 per token.
The price has distanced itself significantly from its point of control (POC) – the area where the most volumes have been traded – and could be poised to experience a strong pullback as momentum indicators have reached extreme levels.
The Relative Strength Index (RSI) has already entered overbought levels while the MACD’s histogram has been on an uptrend for 10 days in a row.
These are typically signs that the rally could be reaching its phase of exhaustion so traders should be cautious at this point to take some profits off the table as the market tends to sell off heavily stretched assets faster than it pumps it.
These Are The Key Supports to Watch
The outlook for PENGU is still bullish as the price broke above the 21-day EMA for the first time in months with strong volumes just a few days ago.
At this point, any light green bars in the MACD’s histogram may be considered a buying opportunity as the rally could keep going for a while.
That said, it would be nice to see the volume profile shifts to the point that the POC is closer to where the price is now as these low trading volumes open up the door for radical price swings in any direction.
If the price pulls back at this point, the 61.8% Fibonacci retracement level would be one of the key support areas to watch at around $0.0077, followed by the 21-day EMA, which currently sits at around $0.0072.
[ad_2]
