- PENGU appeared to have a bullish 4-hour structure, bearish on the hourly time frame
- The defense of the $0.35 level is crucial for the next 24 to 48 hours
Pudgy penguins [PENGU] upside down dog hat [WIF] in terms of market capitalization on December 26. The price development of the altcoin over the past week showed that the memecoin is now here to stay.
In fact, the rising rock bottom prices of the Pudgy Penguins NFT collection also argued for a potential demand for PENGU in the ecosystem.
PENGU plagues outbreak in range formation
Source: PENGU/USDT on TradingView
The range in question extended from $0.394 to $0.289. Since the history of the price action was short, the relevant data did not extend too far back, but it is still possible to make price predictions based on the limited data.
On the 4-hour chart, PENGU maintained its bullish structure. It was also well above mid-range support at $0.312. The CMF traded above +0.05, underscoring the large capital flows into the market. However, trading volume has been trending south for the past two days.
The breakout attempt on December 25 occurred due to the average trading volume, which indicated some lack of confidence among market participants. And yet this would probably lead to another test of air resistance.
The DMI showed that there was a strong bullish trend on the 4-hour chart, with both the +DI (green) and ADX (yellow) above 20.
Source: PENGU/USDT on TradingView
If we zoom in on the 1-hour chart, we can see that the breakout attempt has been fully recovered. The structure on the 1-hour chart was bearish and the hourly order block in the $0.35 zone was crucial for buyers to defend.
The recent lower high to beat in this time frame would be the $0.39 level.
As expected, the $0.435 retracement was accompanied by a decline in Open Interest. The drop 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 is PENGU’s market cap in terms of BTC
Overall, the $0.35 defense should push Pudgy Penguin token prices higher. If this support is not defended, the 4-hour structure would turn bearish, and the center support at $0.312 would be the next target.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer