Is Pudgy Penguins (PENGU) Near a Bullish Reversal? An Emerging Fractal Suggests So!

Key Takeaways

• Pudgy Penguins (PENGU) is down short term but showing a familiar bottoming structure.
• PENGU’s chart closely mirrors PEPE’s pre-breakout fractal from late 2024.

The broader cryptocurrency market has once again slipped into a corrective phase after a strong start to the year. Bitcoin (BTC), which recently surged above the $95,000 mark, has pulled back sharply and is now trading below $88,000. Ethereum (ETH) has faced even heavier pressure, sliding more than 10% over the past week — a move that has weighed on major altcoins across the board.

Pudgy Penguins (PENGU) hasn’t been spared either. The token is currently down around 7% on the week. However, beneath the surface, PENGU’s price action is beginning to show a familiar and potentially bullish setup — one that closely resembles PEPE’s structure before its explosive breakout.

PENGU Mirrors PEPE’s Pre-Rally Structure

A side-by-side comparison of the PEPE and PENGU charts reveals striking similarities.

Back in late 2024, PEPE went through a sharp decline that eventually led to a bottoming formation. During this phase, price consolidated for an extended period inside a gray accumulation zone while forming a potential bearish Butterfly harmonic pattern. At the time, sentiment was muted and volatility remained compressed.

Once PEPE finally broke above that gray range, momentum flipped aggressively. The breakout triggered a powerful bullish reversal, sending PEPE more than 100% higher into December 2024.

Now, PENGU appears to be following a remarkably similar path.

As shown on the right side of the chart, PENGU has also experienced a strong drop followed by a basing structure inside a gray consolidation zone. The price action suggests a potential bearish Butterfly harmonic pattern forming near the bottom — a setup that closely mirrors PEPE’s behavior just before its reversal.

What’s Next for PENGU?

If the PEPE fractal continues to play out, PENGU may be approaching the early stages of a trend reversal.

A decisive breakout above the gray zone resistance near $0.01382 would be a key confirmation signal. Such a move could open the door for a bullish continuation toward higher levels, with a potential upside target near $0.034, similar to PEPE’s post-breakout expansion.

That said, fractals are not guarantees — they are historical analogs, not certainties.

On the downside, a sustained drop below the $0.0084 support level would invalidate the fractal comparison and suggest that PENGU needs more time to build a durable base before any meaningful upside can materialize.

For now, PENGU sits at a technical crossroads. While broader market weakness continues to apply pressure, the chart hints that smart money may be quietly positioning ahead of a possible reversal. If momentum returns and the gray zone gives way, Pudgy Penguins could be setting up for its next major move — just as PEPE once did.