- Pudgy Penguins (PENGU) has surged 25.54% over the past week.
- A breakout above resistance hints at a sustained bullish trend.
- A technical pattern signals a potential price jump toward $0.075.
PENGU, the meme token that found inspiration in its NFT mascot, is currently making history as the altcoin records a bullish breakout after being in price consolidation for days.
An in-depth analysis of its last 7-day candlestick chart offers the story of accumulation, volatility, and follow-on breakout strength that can be the short-term direction of the token.
PENGU currently stands at $1,828.34. It has a 24-hour volume of $1.18 billion, with a total market value of $2.28 billion. It has increased by 18.86% in the last 24 hours, as well as 25.54% in the previous seven days.
The increase comes during a general market increase, spurred on by a cumulative crypto market cap of $3.73 trillion.
The chart started with gradual advances, creating a pattern of higher lows and higher highs. The initial positive movement built the bullish foundation.
But the price movement quickly decelerated, settling into a consolidative phase. PENGU traded in a constricted range of $0.0300 to $0.0325 during this phase.
The lateral movement was indicative of indecisive trading by the market participants with latent momentum, characteristic of markets in need of a trigger.
Also Read: Pudgy Penguins Rockets on ETF Buzz, Analysts Predict Explosive Rally to $0.060
PENGU Breaks Resistance with Volume Spike Surge
That breakout catalyst came in the form of a highly recognizable breakout characterized by two giant green candles. The price blasted through previous resistance areas and up as far as $0.0360.
Importantly, volume increased significantly in that breakout, validating the strong demand at the hands of buyers and the likely development of renewed optimism.
Analyst Ali has recently spotted a multi-year descending triangle formation on PENGU’s price chart. The technical formation normally indicates the possibility of a breakout, and the token appears to confirm that forecast.
The descending triangle has a string of lower highs that are meeting a stable horizontal support base in the vicinity of $0.02–$0.05. The breakout of the tightening formation bodes well in line with the analyst’s positive sentiment and his short-term price forecast of $0.075.
Chart Pattern Suggests a 144% Price Upside
Should the positive momentum be sustained and the breakout that has been predicted take place, PENGU might be heading towards a 144% potential upside from its present price of $0.030734.
Even with this bright outlook, the token experienced a 3.11% intraday loss recently. This highlights the volatility that comes with meme coins and altcoins.
It has been proved by MIT that although the breakout of triangles can lead to strong trends, they are accompanied by massive price swings.
Still, with growing investor demand and the broader crypto market aided by favorable macroeconomic sentiment, such as forecasted rate cuts, a token breakout can be the start of a new chapter of a rally.
Also Read: PENGU Breaks Out of Accumulation Zone, Eyes $0.045 as Next Target
Disclaimer: This article is based on real-time market data and general technical observations. It does not constitute financial advice. Always conduct your own research before making investment decisions.
