- PENGU seemed to have a bullish 4-hour structure, bearish on the hourly timeframe
- Defense of the $0.35-level is critical over the next 24-48 hours
Pudgy Penguins [PENGU] flipped dogwifhat [WIF] in terms of market capitalization on 26 December. The altcoin’s price performance over the past week revealed that the memecoin is now here to stay.
In fact, the rising floor prices of the Pudgy Penguins NFT collection also made the case for potential demand for PENGU in the ecosystem.
PENGU teases range formation breakout
Source: PENGU/USDT on TradingView
The range in question extended from $0.394 to $0.289. Since the price action history was short, the relevant data did not extend too far back, but it is still possible to make price predictions from the limited data.
On the 4-hour chart, PENGU retained its bullish structure. It was also well above the mid-range support at $0.312. The CMF was above +0.05, underlining hefty capital flows into the market. However, the trading volume has trended south over the past two days.
The breakout attempt on 25 December occurred on the back of average trading volume, which signaled some lack of faith from market participants. And yet, this would likely lead to another retest of the overhead resistance.
The DMI showed that a strong bullish trend was in progress on the 4-hour chart, with both the +DI (green) and ADX (yellow) above 20.
Source: PENGU/USDT on TradingView
Zooming in on the 1-hour chart, we can see that the breakout attempt has been fully retraced. The structure on the 1-hour chart was bearish, and the hourly order block at the $0.35 zone was vital for buyers to defend.
The recent lower high to beat in this timeframe would be the $0.39-level.
Source: Coinalyze
As expected, the retracement from $0.435 has been accompanied by a decline in Open Interest. The fall in speculative activity revealed that short-term sentiment was weakly bearish, but did not support the idea of widespread short selling.
Realistic or not, here’s PENGU’s market cap in BTC’s terms
Overall, the $0.35 defense should see Pudgy Penguin token prices climb higher. Failure to defend this support would see the 4-hour structure flip bearishly, and the mid-range support at $0.312 would be the next target.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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