Meme coin Pudgy Penguins (PENGU) is today’s top gainer, jumping nearly 10% in the last 24 hours despite a broader market pullback.
Today’s rally adds to the bullish momentum that began after the altcoin broke out of its descending parallel channel on June 27. Since then, PENGU has surged by over 50%, marking one of the strongest recoveries among meme coins over the past month.
PENGU Breaks Out, Hits 50% Gains
Readings from the PENGU/USD one-day chart show that between May 14 and June 26, the altcoin traded within a descending parallel channel.
This pattern emerges when an asset’s price makes successive lower highs and lower lows, moving between two downward-sloping parallel trendlines. It reflects a downtrend as selling pressure spikes and bullish sentiment weakens.
However, things shifted on June 27 when PENGU closed above this channel and initiated a rally afterwards. Now trading at $0.015, the meme coin’s price has since climbed by 50%.
PENGU Flashes Strong Buy Signals
Technical indicators show PENGU is poised to extend these gains in the short term. For example, the token’s Aroon Up Line is at 100% as of this writing. This means PENGU’s current uptrend is strong, backed by significant demand and not driven by speculative trades.
An asset’s Aroon Indicator measures the strength and direction of a trend by tracking the time since the highest and lowest prices over a given period. It comprises two lines: Aroon Up, which measures bullish momentum, and Aroon Down, which tracks bearish pressure.
As with PENGU, when the Aroon Up line is at 100%, the asset has recently hit a new high, signaling strong upward momentum and a dominant bullish trend. This suggests that buying pressure is high, and the price may continue rising.
Moreover, the setup of the token’s Moving Average Convergence Divergence (MACD) indicator supports this bullish outlook. At press time, PENGU’s MACD line (blue) rests above the signal line (orange), highlighting the bullish strength in the market.
The MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
As with PENGU, when the MACD line crosses above the signal line, it signals positive momentum, suggesting that buying activity is increasing. Traders interpret this setup as a buy signal, which could add more upward pressure on the meme coin’s price.
PENGU Eyes $0.017 Breakout as Bulls Push Higher
If current momentum holds, PENGU could soon attempt to break above its next resistance level at $0.017 and flip it into a support floor.
A successful breach of this price zone could propel the altcoin toward $0.019.
Conversely, failure to maintain the current trend could trigger a PENGU token price dip to $0.012.
Disclaimer
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Source: https://beincrypto.com/pengu-price-pumps-bulls-take-charge/