🌎 PENGU Token Jumps 8.7% Ahead of Abstract Mainnet

Pudgy Penguins Token PENGU Sees 8.7% Rally Amid Anticipation of Abstract Mainnet Launch

The Pudgy Penguins token, PENGU, has seen a significant surge in price, rising 8.7% to an intraday high of $0.0264 on January 23. This rally comes despite the broader NFT token market experiencing a 3.8% decline over the past day.

Market Performance

The Pudgy Penguins token now boasts a market capitalization of over $1.6 billion, with a 20% jump in daily trading volume, exceeding $411 million. This growth has made PENGU one of the top performers among the largest 100 cryptocurrencies by market capitalization.

Drivers of the Rally

The primary driver behind PENGU’s recent rally is the growing anticipation surrounding the launch of Abstract, an Ethereum layer-2 network developed by Igloo Inc., the parent company behind both PENGU and the Pudgy Penguins NFT collection. Pudgy Penguins is expected to launch on Abstract alongside other projects, with rumors suggesting that PENGU holders may be eligible for an airdrop of the layer 2 network’s native token during its token generation event.

Potential Catalysts

Another factor potentially contributing to the rally is the significant increase in Pudgy Penguins’ non-fungible token sales. According to recent data, Pudgy Penguin sales rose by almost 80% on January 23, making it the sixth best-performing NFT collection. Additionally, speculation surrounding the potential end of capital gains tax on crypto profits for U.S.-based cryptocurrencies could provide a significant upside for projects developed by U.S. companies like Igloo Inc.

Technical Analysis

Despite the current momentum pushing PENGU higher, technical indicators suggest that a potential price correction may be on the horizon. The Relative Strength Index (RSI) at 41 signals a bearish momentum, while the Supertrend line stands above the asset’s price. The Chaikin Money Flow, with a negative reading, indicates that buying pressure is waning.

Tips for Investors

Based on these indicators, PENGU could soon face a pullback, potentially retracing to its local support at $0.022. A drop below this level could push it further toward its psychological support at $0.020. However, investors should be cautious and monitor the market closely, as ongoing speculation surrounding the Abstract mainnet launch and potential regulatory changes could impact the token’s price.