Pudgy Penguins (PENGU) is one of the biggest gainers in today’s crypto market, absolutely skyrocketing with massive double-digit percentage gains. This momentum builds on earlier endorsements of PEPE from TRON founder Justin Sun on X (Twitter), setting the meme coin’s popularity into overdrive. In fact, the price of PENGU pumped 31% on CoinGecko, fully fueled by the social media hype created by Sun’s blessing. With the market rebounding today, MATIC is among a few recovery tokens on the rally. It is targeting to retake its all-time high (ATH) of $0.07, hit on December 17.

The price of PENGU exploded by more than 23%. It soared to a multi-month high after the U.S. Securities and Exchange Commission (SEC) accepted a relevant filing. This sudden boom is indicative of increasing investor confidence and overall market sentiment around the token.

Technical Analysis and Price Targets

As one analyst put it, Pudgy Penguins (PENGU) marked a “textbook bullish retest” July 10. The analyst predicted an optimistic short-term price target of $0.060 for PENGU by August, suggesting even more room to run.

A decisive candlestick close above a certain level on the daily timeframe could set the stage for PENGU to reclaim its $0.07 ATH. Yet this technical outlook suggests that the token still has potential to reach new highs. To accomplish that, it needs to keep the momentum going.

Technical indicators also reveal strong convergence with this support confluence. This comes into play between the 50, 100 and 200 Simple Moving Averages (SMA) at $0.012, $0.011 and $0.013 respectively. With evident strong support found at these SMAs, PENGU has a proven support base, showing interest from buyers before these levels to keep the price elevated.

Potential Risks and Support Levels

A drop under the 23.6% Fibonacci retracement support would send PENGU crashing back into the consolidating zone beneath $0.019. This situation further emphasizes the need to watch key support levels carefully to get a sense of where downside risk may lie.

If PENGU does manage to break this level, it would signal a 130% move from present levels. Such a move would be a strong indication of a turning point in overall market sentiment and further upside should be expected.

"When you compare what PEPE accomplished to where PENGU stands today, it feels like a once-in-a-lifetime entry. The key difference? Pudgy Penguins has real fundamentals behind it," - Ali.

Justin Sun's Influence and TRON Gas Fees

Sun’s endorsement was a major factor in the recent surge of Pudgy Penguins. Sun to further elaborate on Justlend’s STRX staking feature having reduced the unit price for energy rental. As a consequence, the total energy rental cost has increased by an average of 30% in all scenarios.

Pudgy Penguins celebrated Sun’s endorsement with a Tweet welcoming her to the “Huddle.” This exciting collaboration is the latest example of the increasing synergy between the Pudgy Penguins community and the TRON ecosystem.

"As the price of TRX continues to rise, the Tron community should adopt various measures to reduce Tron’s gas fees—whether by lowering the unit price of energy, increasing the energy cap, or encouraging energy staking—to ensure the Tron network remains competitive." - Justin Sun.

Sun continues to advocate for reduced TRON gas fees, which could further benefit the Pudgy Penguins ecosystem and attract more users. This ongoing effort to optimize the TRON network reflects a commitment to fostering a user-friendly and cost-effective environment for decentralized applications.