PENGU surged 8.6% in 24 hours and has risen 47% year-to-date, reflecting the strong momentum of the memecoin group as altcoin market Capital (excluding ETH) also rose.
This upward trend has led many traders to consider "buying on strength." However, entering a buy order for PENGU still heavily depends on the Bitcoin trend, key technical levels, and the risk of volatility if the market corrects.
- PENGU surged 8.6% on the day and +47% year-to-date, benefiting from the memecoin rally.
- Breaking above $0.0128 confirms the bullish structure on the larger timeframe, targeting $0.016 and $0.022.
- The main risk comes from the possibility of a Bitcoin correction, which could drag down market volatility and weaken the momentum of PENGU.
PENGU surges along with the dominant trend of memecoin.
PENGU surged 8.6% in 24 hours and +47% year-to-date, amid a clear short-term strength trend in the memecoin group.
The positive performance of PENGU comes as the altcoin market as a whole improves. Since January 1st, the altcoin market Capital (excluding Ethereum) has increased by 7.5%, indicating a tendency for capital flows to expand beyond large Capital assets.
Within the memecoin group, the momentum often stems from short-term sentiment and money flows, so volatility can be more intense compared to other altcoins. PENGU is one of the Token that has recorded a notable increase during this period.
The key technical signal for PENGU is at the $0.0128 mark.
If PENGU surpasses $0.0128 (the previous lower high), the price structure on the 3-day timeframe could shift to bullish, opening up a buying opportunity for traders on lower timeframes.
On the 3-day timeframe, the downtrend that began in August has erased much of the gains from June and early August. Volume and momentum indicators remain negative, but show signs of a gradual recovery.
In the scenario of a successful breakout above the $0.0128 mark, the next long-term targets are set at $0.016 and $0.022. Conversely, if this area is not breached, the risk of a "rise followed by a sell-off" remains, especially given that memecoins are often sensitive to general market volatility.
The biggest risk when opening a long position in PENGU is a Bitcoin correction.
PENGU could maintain its upward momentum if Bitcoin buying continues to keep the market moving; however, a Bitcoin correction could trigger deeper volatility across the entire crypto market.
Memecoin's bullish momentum is described as dependent on Bitcoin continuing to drive the market. When Bitcoin corrects, high-beta assets like memecoin tend to react more strongly, causing volatility to increase rapidly.
Traders looking to "buy the Dip" should note that Bitcoin has shown weakness in recent months, and this trend is unlikely to reverse in the short term. This could directly impact sentiment towards PENGU as well as risk appetite across the market.
PENGU broke out of last month's consolidation zone but a rebound to $0.0110–$0.0115 is still possible.
PENGU has broken out of last month's sideways range, but is likely to correct to $0.0110–$0.0115; a break below $0.0105 would signal weakening upward momentum.
The price breaking out of the range formed last month is a positive sign, and momentum and buying pressure on the 4-hour timeframe are clearly evident.
However, due to the appearance of bearish momentum divergence, a pullback to the $0.0110–$0.0115 range is XEM possible. In a worst-case scenario, a drop below $0.0105 would suggest that the rally is fading. Conversely, a breakout above $0.0128 would strengthen the bullish trend.
Summary of the analysis for traders
Memecoin is outperforming in the short term, but PENGU trading plans should be tied to the $0.0105 and $0.0128 levels, while monitoring the risks from Bitcoin.
- The memecoin market has been performing better recently, and this trend may continue this week.
- Traders can prepare scenarios for opening buy positions, but need to monitor Bitcoin because any signs of weakness could affect sentiment with PENGU.
Frequently Asked Questions
Which level confirms that PENGU has shifted to an uptrend on the larger timeframe?
A breakout above $0.0128 (the previous lower high) is considered a signal of a structural shift toward an uptrend on the 3-day timeframe, thereby creating opportunities for traders on lower timeframes.
What are the long-term goals mentioned for PENGU?
The next long-term targets are stated as $0.016 and $0.022, in case PENGU maintains its upward momentum after improving its trend structure.
Why is Bitcoin the main risk when buying PENGU?
Memecoin's upward momentum is believed to be dependent on Bitcoin's buying power. If Bitcoin corrects, volatility could spread across the entire crypto market and undermine sentiment towards PENGU.
Which price levels should we watch on the 4-hour timeframe?
A pullback to $0.0110–$0.0115 is possible. A drop below $0.0105 would signal weakening momentum, while a breakout above $0.0128 would solidify the uptrend.
