PENGU creates waves, increasing by 50% in a short-term - What's next?

The meme Token Pudgy Penguins (PENGU) is making a strong impression as the most bullish cryptocurrency in the market today, with an increase of nearly 10% in the past 24 hours, despite significant declines in the overall market.

This bullish run follows the impressive breakout of PENGU after this coin escaped the descending parallel channel on June 27. Since then, PENGU has recorded an increase of over 50%, marking one of the strongest recoveries among meme coins in the past month.

PENGU creates waves, bullish 50% in a short period of time

The one-day chart of PENGU/USD shows that from May 14 to June 26, this altcoin has been stuck in a descending parallel channel.

This descending channel pattern occurs when the price of an asset creates consecutively lower highs and lows, moving between two downward-sloping parallel trendlines. This is a sign of a bearish trend, with increasing selling pressure and gradually weakening market sentiment.

However, the turning point occurred on June 27, when PENGU unexpectedly closed above the upper limit of this descending channel, opening up a strong bullish phase. Currently, this meme coin is trading at 0.0146 USD, with a 50% increase compared to before.

The parallel channel is in a fall PENGU | Source: TradingView## Flashing strong buy signal

Current technical indicators are showing that PENGU has the potential to extend its bullish trend in the short term. Notably, the Aroon Up line of this token is at 100%, indicating that the bullish trend of PENGU is very strong, supported by real demand and not affected by speculative trading.

The Aroon indicator measures the strength and direction of a trend by tracking the time since the highest and lowest prices over a specific period. It consists of two lines: Aroon Up, which represents bullish momentum, and Aroon Down, which reflects bearish pressure.

When the Aroon Up line reaches 100%, as in the case of PENGU, this indicates that the asset has just reached a new high price, signaling strong bullish momentum and that the bullish trend is prevailing. This is a signal that buying pressure is very strong and the price may continue to rise.

The Aroon Up line of PENGU | Source: TradingViewAdditionally, the MACD indicator of PENGU also reinforces this bullish outlook. Currently, the green MACD line (is above the orange signal line ), indicating the strength of the bullish trend in the market.

The MACD indicator helps identify the trend and price momentum of an asset by monitoring the crossover points between the MACD line and the signal line. When the MACD line crosses above the signal line, as in the case of PENGU, this indicates that positive momentum is increasing, while also showing strong buying activity taking place. Traders often see this as a buy signal, which can continue to create bullish pressure for this meme coin.

Aiming for a breakthrough of 0.017 USD

If this bullish momentum continues, PENGU could soon surpass the important resistance level at 0.017 USD and turn it into a solid support level. A successful breakout of this price range will open up opportunities for PENGU to advance to the 0.019 USD level, a potential price point if buying pressure continues to intensify.

Currently, the PENGU price chart shows that the buyers are in control, and if there is no strong correction, this coin may continue to surpass the next resistance levels.

PENGU price chart | Source: TradingViewHowever, if the bullish trend is not maintained, PENGU price may fall back, with the nearest support level at 0.012 USD. If this support level cannot be held, the altcoin may face a deeper correction.

Overall, whether PENGU can maintain its bullish momentum will depend on the strength of the buyers in the coming days.

Justin