PENGU’s recent price increase drove the price above the upper trendline of the falling wedge.
The positive reading of the MACD supports an extended bullish momentum for the token.
Buying pressure rises as PENGU eyes a target it last reached in the first week of January.
The price of PENGU, the official cryptocurrency of the Pudgy Penguins NFT collection, climbed by 10% within the past 24 hours. This increase erased some of the token’s losses over the last 24 hours.
However, it has yet to replicate the remarkable performance achieved after the airdrop in December, which drove a price rally exceeding 500%. Nevertheless, several indicators reveal that the cryptocurrency could be in line to hit higher values. Here is how.
PENGU’s recovery has driven the price back to $0.032. However, that is not the only highlight of the recent performance.
According to the 4-hour chart, the price increase has enabled the token to break out of the falling wedge pattern. A falling wedge is a bullish reversal pattern formed by two descending trendlines.
One of the trendlines connects the highs, while the other connects the lows. As the trendlines converge, it indicates that the downtrend is losing momentum, which could open the doors to a potential bullish breakout.
PENGU’s price now trades above the lower highs. Interestingly, the breakout also comes amid the rise in the Moving Average Convergence Divergence (MACD) reading.
The MACD is a technical oscillator that ranges above and below a zero line. When the MACD line crosses above zero, it indicates upward momentum, suggesting a bullish price trend.
Meanwhile, if a negative MACD line falls below zero, it signifies downward momentum, suggesting the dominance of bearish pressure. As seen above, the MACD on the PENGU chart, has turned positive.
If sustained, it could validate the signals displayed by the falling wedge breakout.
PENGU Price Forecast: No More Losses?
CCN’s further evaluation of the 4-hour chart shows that the Money Flow Index (MFI) has broken above the neutral line.
The MFI measures the flow of capital in and out of a cryptocurrency. When the MFI decreases, it indicates selling pressure, suggesting that the price could decline.
However, in PENGU’s situation, the rise above the signal indicates rising buying pressure. A sustained uptrend could be observed if the volume around the Pudgy Penguins token increases.
The current setup indicates that PENGU’s price might rally above the 0.50 Fibonacci level at $0.036.
This could also set the stage for a rally above the 0.618 golden ratio if validated. In that scenario, the token’s value could climb by 25% and hit $0.040.
However, if PENGU faces rejection at the support floor at the 0.382 Fib region, this prediction might not come to pass. Instead, the token’s value could decline toward $0.025.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
