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 suggests that meme coins will continue to exist.
In fact, the continuous increase in the floor price of Pudgy Penguins NFT collectibles also proves the potential demand for PENGU within the ecosystem.
PENGU indicates a breakout formation in the range.
The discussed range expands from $0.394 to $0.289. Due to the short historical price movement, the relevant data does not 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. CMF is above +0.05, indicating significant funds flowing into the market. However, trading volume has been on a downward trend 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 re-test 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 completely retraced. The structure on the 1-hour chart is bearish, and the hourly order block in the $0.35 area is crucial for buyers' defense.
Within this timeframe, the recent lower high will break through the $0.39 level.
As expected, the retracement from $0.435 is accompanied by a decline in open contracts. The reduction in speculative activity indicates that short-term sentiment is weaker than bearish but does not support the idea of large-scale short selling.
Overall, the defense at $0.35 should help the Pudgy Penguin token price rise. If this support level fails to hold, a bearish trend will emerge on the 4-hour structure, with the mid-range support level of $0.312 becoming the next target.