On December 26, the market capitalization of Pudgy Penguins [PENGU] surpassed that of dogwifhat [WIF]. The price performance of this altcoin over the past week indicates that meme coins will continue to exist.
In fact, the continuous rise of the floor price of Pudgy Penguins NFT collectibles also proves the potential demand for PENGU within the ecosystem.
PENGU indicates a breakout from the range.
The discussed range expands from $0.394 to $0.289. Due to the short historical price movements, the relevant data doesn't extend too far, but price predictions can still be made from the limited data.
On the 4-hour chart, PENGU maintains a bullish structure. It is also well above the mid-range support level of $0.312. The CMF is above +0.05, indicating a significant inflow of funds into the market. However, trading volume has been declining over the past two days.
The breakout attempt on December 25 occurred under average trading volume, indicating a lack of confidence among market participants. However, this may lead to a retest of the upper resistance level.
The DMI shows a strong bullish trend forming on the 4-hour chart, with +DI (green) and ADX (yellow) both above 20.
Zooming in on the 1-hour chart, we can see that the breakout attempt has fully retraced. The structure on the 1-hour chart is bearish, and the hourly order block in the $0.35 region is crucial for buyers' defense.
In this time frame, the recent lower high will break through the $0.39 level.
As expected, the pullback from $0.435 accompanied by a decrease in open contracts. The reduction in speculative activity indicates that short-term sentiment is weaker than bearish but does not support the idea of a large-scale short.
Overall, the defense at $0.35 should help the Pudgy Penguin token price rise. If this support level fails to hold, the 4-hour structure will show a bearish trend, with the mid-range support level at $0.312 becoming the next target.