- The PENGU price is rising as the community readies for the launch of the Abstract network.
- Pengu Penguin NFT sales are up 80%, despite a broader NFT market dip.
- Technical analysis hints at correction for PENGU soon.
Pudgy Penguins token, PENGU price is once again in the spotlight after registering an 8.7% on January 23, reaching an intraday high of $0.0264, making it one of the standout performers among the top 100 cryptocurrencies by market cap.
This rally has propelled PENGU’s market capitalization beyond $1.6 billion, with trading volumes jumping by 20% to over $411 million.
The anticipation surrounding the launch ofthe Abstract network
The primary catalyst for the PENGU price surge is the community’s anticipation surrounding the launch of Abstract, an Ethereum layer-2 network developed by Igloo Inc., the parent company behind PENGU and the Pudgy Penguins NFT collection.
There’s a palpable buzz within the crypto community, fueled by reports that PENGU holders could be eligible for an airdrop of Abstract’s native token at its token generation event. This would be a huge boost for PENGU seeing that it comes a month after the $1.5 billion PENGU airdrop on Solana.
While the airdrop reports remain unconfirmed, the announcement of a January mainnet launch for Abstract has sparked significant investor interest, leading to PENGU holders positioning themselves early to capitalize on the potential benefits.
Pengu Penguin NFT sales surge
The surge in PENGU’s value is also supported by a notable increase in Pudgy Penguin NFT sales, which has risen by almost 80%, making it one of the best-performing collections according to CryptoSlam data.
Notably, the surge in sales comes despite the broader NFT market experiencing a 3.8% decline over the past day.
This increase in transaction volume and interest in the NFTs themselves has further underscored investor confidence in the project’s future, particularly with the upcoming integration into the Abstract ecosystem.
Potential correction on the horizon
While today’s PENGU price surge has caused excitement among traders/investors, not all signs point to continued growth.
Technical indicators suggest a potential correction looming for PENGU. The token’s price was observed near the lower Bollinger Band, signalling bearish control, and the Relative Strength Index (RSI) at 41 hints at a bearish momentum.
Additionally, the Supertrend indicator and a negative Chaikin Money Flow suggest that buying pressure might be waning, potentially leading to a price pullback to support levels at $0.022 or even $0.020.
An external factor that could alter this bearish scenario involves speculative policy changes under President Donald Trump, notably the potential end to capital gains tax on crypto profits for US-based cryptocurrencies. Such a policy shift could significantly benefit projects like Igloo Inc., providing an upside for PENGU.
While the future holds both promise and caution, the immediate impact has undeniably been a surge in interest and value for PENGU.
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