PENGU appears to have a bullish structure in the 4-hour timeframe, but bearish in the 1-hour timeframe.
Defending the $0.35 level is crucial in the next 24-48 hours.
On December 26, Pudgy Penguins [PENGU] surpassed dogwifhat [WIF] in market capitalization. The price movement of this altcoin over the past week shows that this memecoin is likely to have lasting power.
In fact, the minimum price increase of the Pudgy Penguins NFT collection is also a signal of potential demand for PENGU within the ecosystem.
PENGU shows signs of breaking out of the price range
Source: PENGU/USDT on TradingView
The price range being referred to extends from $0.394 to $0.289. Although the price history is short, the data may not go too far, it can still provide predictions from this limited information.
On the 4-hour chart, PENGU maintains a bullish structure. It is also above the mid-range support at $0.312. CMF is above +0.05, confirming strong capital inflow into the market. However, trading volume has decreased over the past two days.
The breakout attempt on December 25 occurred on average trading volume, indicating a lack of confidence among investors. This could lead to a resistance test above once again.
DMI shows a strong bullish trend occurring on the 4-hour chart, with both +DI (green) and ADX (yellow) above 20.
Source: PENGU/USDT on TradingView
Zooming in on the 1-hour chart, we see that the breakout attempt has been completely reversed. The structure on the 1-hour chart is bearish, and the hourly order block around $0.35 is crucial for buyers to protect.
The nearest higher level that needs to be overcome in this timeframe is $0.39.
Source: Coinalyze
As predicted, the correction from the $0.435 level has come with a decrease in Open Interest. The decline in speculative activity indicates that short-term sentiment is weakening but does not support the prevailing short-selling view.
Overall, if the $0.35 level is successfully defended, the price of the Pudgy Penguin Token may rise higher. Losing the ability to defend this support will cause the 4-hour structure to turn bearish, and the mid-range support at $0.312 will be the next target.
DYOR! #Write2Win #Write&Earn $PENGU
