Meme coin Perky Penguin (PENGU) is today's top gainer, rising nearly 10% in the last 24 hours despite overall market adjustment.
Today's rise adds to the upward momentum that began after breaking through the descending parallel channel on June 27th. Since then, PENGU has surged over 50%, recording one of the strongest recoveries among meme coins last month.
PENGU Breaks Through 50% Rise
According to the daily chart readings of PENGU/USD, the altcoin was trading within a descending parallel channel from May 14th to June 26th.
This pattern appears when an asset's price forms consecutive lower highs and lows, moving between two downward parallel trend lines. This reflects a downtrend with increased selling pressure and weakened bullish sentiment.
However, the situation changed when PENGU closed above this channel on June 27th and subsequently began a rally. Currently trading at $0.015, the meme coin's price has since risen 50%.
PENGU Shows Strong Buy Signal
Technical indicators suggest PENGU is prepared to continue this upward trend in the short term. For example, the token's Aroon Up Line is currently at 100%. This indicates that PENGU's current upward trend is strong and supported by substantial demand, not speculative trading.
The asset's Aroon indicator measures trend strength and direction by tracking time after the highest and lowest prices within a given period. It consists of two lines: Aroon Up measuring upward momentum and Aroon Down tracking downward pressure.
When the Aroon Up line is at 100%, as with PENGU, the asset has recently recorded a new high point, indicating strong upward momentum and a dominant upward trend. This suggests high buying pressure and the potential for continued price increase.
Moreover, the token's Moving Average Convergence Divergence (MACD) indicator settings support this upward outlook. Currently, PENGU's MACD line (blue) is positioned above the signal line (orange), emphasizing the market's bullish strength.
The MACD indicator identifies trend and momentum in price movements. It helps capture potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line crosses above the signal line, as with PENGU, it indicates positive momentum and suggests increasing buying activity. Traders may interpret this setup as a buy signal, potentially adding more upward pressure to the meme coin's price.
PENGU Eyes Breaking $0.017... Bullish Trend
If the current momentum is maintained, PENGU may soon break through the next resistance level of $0.017 and attempt to convert it into a support line.
Successfully breaking this price level could see the altcoin move towards $0.019.
Conversely, if it fails to maintain the current trend, the PENGU token price could drop to $0.012.
