Pudgy Penguins (PENGU) is currently capturing significant market attention as analysts predict a potential resurgence, drawing parallels to its impressive July rally. Despite recent market volatility, this memecoin has demonstrated resilience, leading to speculation about whether it's poised for another substantial upward move.
Technical Indicators and Fractal Patterns
Prominent analyst Ali Charts highlights a compelling fractal pattern, suggesting PENGU could mirror its April-July price action, which culminated in a massive 417% rally. This pattern indicates a potential "buy-the-dip" opportunity followed by a new leg up. Based on historical price levels, a 26% rally is envisioned, potentially triggered by previous surges linked to events like the Jackson Hole Symposium. However, the path isn't entirely clear; the Chande Momentum Oscillator shows only moderate strength in the current uptrend, hinting that a final bearish dip might precede the full rally. For sustained bullish momentum, PENGU must decisively break above the neckline of its developing double bottom pattern.
Liquidity Dynamics and On-Chain Insights
Further analysis of liquidity and on-chain data offers deeper insights into PENGU's near-term trajectory. A significant concentration of liquidity, amounting to millions of dollars, is observed between $0.031 and $0.032, making this zone a crucial price magnet. A short squeeze on orders within this region could indeed catalyze the predicted 26% rally. While overall on-chain sentiment remains bullish, with Messari data indicating high "mindshare" and strong transactions per hour, a locked 29% of PENGU poses a potential sell-off risk by increasing market supply. Consequently, the performance of PENGU in the upcoming trading sessions will be critical in determining its short-term trend.
