Pudgy Penguins [PENGU] price prediction – Rally depends on THIS level holding up!

Pudgy Penguins [PENGU] surpassed dogwifhat [WIF] in terms of market capitalization on December 26th. The recent performance of this memecoin indicates a growing presence in the market.

Moreover, the increasing floor prices of the Pudgy Penguins NFT collection suggest a potential rise in demand for PENGU within the ecosystem.

PENGU on the Verge of Breaking Out of its Trading Range

The trading range observed for PENGU ranged from $0.394 to $0.289. With limited historical price data due to its recent emergence, it remains feasible to project price movements based on the available information.

Analysis of the 4-hour chart signals a bullish trend for PENGU, with the price comfortably above the midpoint support level at $0.312. The Capital Money Flow (CMF) indicates a significant influx of capital into the market, although trading volume has exhibited a declining trend over the past few days.

The breakout on December 25th, accompanied by average trading volume, did raise some doubts among investors, likely leading to a retest of the upper resistance level.

The Directional Movement Index (DMI) on the 4-hour chart indicates a robust bullish trend, with both the positive Directional Indicator (+DI) and Average Directional Index (ADX) above 20.

Upon closer inspection of the 1-hour chart, the previous breakout attempt has retraced back. The short-term market sentiment appeared bearish on this timeframe, with the $0.35 region serving as a crucial support level for buyers.

Aiming higher, overcoming the recent lower high at $0.39 is essential for a positive price movement.

Notably, the retracement from $0.435 coincided with a decline in Open Interest, reflecting a decrease in speculative activity. While short-term sentiment leaned towards a bearish outlook, widespread short selling wasn’t evident.

In summary, defending the $0.35 support level could potentially drive Pudgy Penguin token prices upwards. Failure to uphold this level might result in a bearish shift in the 4-hour structure, with the subsequent target set at the $0.312 mid-range support level.

Disclaimer: Please note that the opinions expressed in this analysis should not be considered as financial, investment, or trading advice, as they reflect the writer’s viewpoint only.