PENGU rallies by 10% as NFT sales drop – Relief bounce or bull trap?

Using the H4 chart’s swing move lower in the first week of February, a set of retracement levels was plotted.

The Pudgy Penguins [PENGU] NFT sales have fallen in volume over the past week. According to NFT price floor data, the number of sales fell by just over 28% in a week, while the NFT’s price floor remained at 4.20 Ethereum [ETH].

This floor has hovered around 4-4.5 ETH in February so far. Meanwhile, over the last 24 hours, the platform’s utility token, PENGU, rallied by 10.06%. After posting a low of $0.0061 on Thursday, 12 February, PENGU climbed by 13.19% on the charts.

At the time of writing, it was trading at $0.0069. Its recent momentum might not lead to lasting gains due to the long-term bearish price trend.

How high can this PENGU bounce go?

Source: PENGU/USDT on TradingView

The 1-day timeframe revealed that the swing structure was bearish. PENGU’s breakdown below the $0.0071 swing low from June 2025 was evidence of this. The press time bounce is likely part of a pullback.

The $0.0075 and $0.01 levels were the closest, strongest supply zones on the 1-day timeframe.

The technical indicators remained bearish. The OBV has bounced in recent days, but its longer-term downtrend meant that seller volume has been prevalent in recent weeks. The RSI was climbing towards neutral 50, but might not achieve a lasting breakout on this timeframe.

Fibonacci retracement levels yield a more precise price target

Source: PENGU/USDT on TradingView

Using the H4 chart’s swing move lower in the first week of February, a set of retracement levels was plotted. They revealed that the press time PENGU price bounce was not yet over.

The move could likely reach $0.007414 – The 78.6% retracement level. A less likely scenario that traders should still be prepared for is a bounce all the way to the $0.008 local highs.

After testing these supply zones, it is likely that Pudgy Penguins‘ utility token prices would begin another bearish impulse move.

Final Summary

PENGU’s price action has been decidedly bearish in the long-term, and investors need not FOMO about the recent 10% gains. Price bounce could extend upwards by another 7%-15% in the coming days.

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