The crypto market welcomed significant gains this week amidst renewed investor confidence. Alongside top assets, Pudgy Penguins (PENGU) also posted a double-digit rally over the past 24 hours. The meme coin is up by more than 12% during this timeframe.
But the latest data shows that the upside may not be over just yet.
Pengu Bulls Wake Up
According to Ali Martinez, the Pudgy Penguins token could be preparing for a major move. PENGU is showing several positive signals on its weekly chart. The analyst pointed to a squeeze in the Bollinger Bands. The bands have drawn closer together, which means that volatility has fallen. Moves like this often happen just before volatility picks up.
Other indicators are also turning positive. The Tom DeMark Sequential, for instance, has flashed two buy signals on the weekly chart. The first was a 9 setup. It was followed by a Combo 13 signal. Martinez explained that the combination could point to the start of a new bullish countdown.
The Parabolic SAR has turned bullish as well. Its dots are now below PENGU’s price. This suggests that the current trend is gaining strength and could offer support during a potential move higher. The SuperTrend indicator has issued a buy signal. The analyst observed that a similar signal in the past was followed by a 1,156% rally. However, past performance does not guarantee another run-up of the same size.
At $0.00897, PENGU is currently trading inside a parallel channel, according to the analysis. The first major level is around $0.025. A breakout could push the meme coin toward $0.045, a level that Martinez estimates would mean roughly 400% upside from its current price. For now, though, the move still depends on PENGU breaking out and holding above the crucial resistance.
Broad Buying Pressure
The recovery was not just limited to PENGU. Other meme coins have also witnessed strong gains recently. PEPE climbed by more than 25% over the past day. Next up was dogwifhat (WIF), which followed with nearly 20% gains. BONK jumped over 16% during the same period.
Meanwhile, OG meme coin Dogecoin (DOGE) gained more than 12%. Its rival, Shiba Inu (SHIB), also posted a modest surge of around 7%.
Source: CryptoPotato
