- PENGU drops into the same demand zone that produced the first 3X rally and traders now watch the reaction.
- The price forms a clean downtrend while the RSI makes a steady lower line that may soon break in sync.
- The structure shows clear compression at support and this setup often forms before a shift toward stronger momentum.
PENGU returns to the same demand zone where the asset first made a strong 3X run and the chart now shows early signs of compression that often appear before a shift in momentum. The asset falls into a level that many traders see as a key point for future direction. The current move also forms as Bitcoin approaches its own support area which adds more attention to the broader setup.
The chart shows a complete drop back into the light blue zone that produced the first major rally earlier in the year. The price now trades near 0.013 and moves with a slow downward structure against a clear trendline. The candles form a steady decline with no violent wicks, which signals controlled movement rather than panic selling. This type of behavior often appears near levels where markets begin to form a base.
The RSI placed under the price shows a long trendline that points downward but stays above the earlier low. This creates a small gap between the price movement and the RSI slope, which many traders view as a sign that momentum may soon shift. The RSI has several small peaks that line up with the downward price steps, and both now approach a point where a breakout could form if pressure weakens.
Return To Key Levels
PENGU trades back to the same zone where the analyst first mentioned the asset months ago. The early call produced a 3X move, which gained strong attention from the market. The price now returns to that same region after a long decline and traders compare the current structure with the earlier pattern. The similarities form interest because many altcoins often revisit origin zones before new expansion cycles.
The zone also lines up with the large consolidation band from earlier months. During that period, the price spent several weeks in tight movement while the market prepared for the earlier breakout. Now the chart shows the same behavior forming again. The candles move with a slow rhythm and hold the level without a deep breakdown. This type of controlled behavior often appears when supply begins to thin.
The downward trendline on the right side of the chart acts as the main resistance to watch. Each push into this line shows a weaker reaction, and the slope now compresses the range. The price forms higher wicks near the trendline, which signals steady testing of the upper edge. If the trendline breaks, the chart may move back toward the wider range seen above the blue zone.
Market Structure And Next Steps
The structure now forms a familiar shape seen in many altcoin cycles. Price returns to a base level and forms long compression while momentum slowly rebuilds. The RSI structure supports this view since the indicator holds above a key point while the price continues to test the same support band.
The chart suggests that PENGU may bottom soon, especially if Bitcoin stabilizes at its own support. The analyst states that a new round could follow once broader conditions improve. The early move would likely confirm if the price breaks above the downtrend line and holds above the demand zone.
The structure now shows early conditions that match earlier cycles and many watch the charts closely as the pattern matures.
