Can a 13% rally pull PENGU out of its two-week slump?
As Bitcoin rallies, PENGU follows but the real test lies just above KEY Fib resistance.
Key Takeaways
Why has PENGU rallied today?
A market-wide rebound lifted Bitcoin by 4.3%, while PENGU surged 12.8% alongside stronger altcoin momentum.
Is this recent move sustainable?
Sustained buying volume and improving sentiment are key for PENGU bulls to maintain gains. The $0.016 zone remains critical in the short term.
Over the past 24 hours, Bitcoin [BTC] rallied from $101.7k to $106.1k, a 4.3% move.
This Bitcoin impetus has given altcoins some short-term upward momentum as well. The altcoin market cap, excluding Ethereum [ETH], rose by 3.74%, or $35.3 billion.
Pudgy Penguins [PENGU] was one of the popular memecoins that benefited from the recent bullish momentum. The official coin of the Pudgy Punguins NFT collection, this memecoin rallied by 12.8% over the past 24 hours.
Additionally, its daily trading volume jumped by 33% to $202 million, according to CoinMarketCap data.
Is this the start of a trend reversal?
Pudgy Penguins begin to make a comeback
In a recent report, AMBCrypto noted the memecoin’s bearish structure and trend over the past few weeks. And now, almost two weeks later, the bearish trend remained in place.
PENGU has dropped by 28.5% from the 27th of October, falling below the 78.6% Fibonacci retracement level at $0.016.
This decline was accompanied by an imbalance (white) posted at the $0.016 area, reinforcing the strength of the resistance immediately overhead.
Both the OBV and MACD indicators show limited recovery. The former has trended lower for a month, and MACD lines remain close, signaling weak momentum.
To flip the bias bullish on higher timeframes, PENGU must reclaim the $0.023 region as support.
Short-term momentum favors buyers
On the 1-hour chart, a bullish bias appeared reasonable.
The internal and swing structures were bullish, and the local highs at $0.0162 were being tested.
In fact, the OBV reflected increased buying pressure since the 4th of November, and the MACD signaled strong bullish momentum.
Given the importance of the $0.016-$0.017 area on the higher timeframes, PENGU traders can wait for a move beyond $0.017 and a retracement to $0.016 to go long.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
