An analyst believes that based on the technical analysis (TA) patterns in the 4-hour chart, Pudgy Penguins (PENGU) may be close to a major breakout.
PENGU may recently follow the bull flag trend.
In a new article on platform X, analyst Ali Martinez analyzed the next move of Pudgy Penguins based on chart patterns. This pattern is known as a bull flag, which is a type of flag pattern. When the price of an asset experiences a period of consolidation within a parallel channel after an initial significant fluctuation, a flag pattern is formed. This initial fluctuation is referred to as the 'pole,' while the channel constitutes the 'flag.'
A bull flag pattern occurs when the flagpole is upward and the flag consolidates parallel to a net downward movement. When the price trades within the flag channel, it is likely to face resistance at the upper trendline and support at the lower trendline. A breakout above or below either of these levels could indicate a price breakout in that direction.
The bull flag pattern is considered a bullish continuation pattern, so a breakout is more likely to occur above the resistance line of the parallel channel. Such breakouts are also believed to correspond to the length of the pole of the pattern.
Similar to the bull flag, the bear flag is also a type of pattern. It operates in a roughly similar manner, except that the direction of the pole and flag is reversed. That is, the pole represents a sharp downward trend, while the flag represents an upward consolidation phase.
Now, here is the chart shared by Martinez, showing that PENGU's price has been trading within a bull flag for the past month on a 4-hour basis:
As shown in the above chart, PENGU has been slowly trending downward within the bull flag channel. This memecoin recently tested the upper trendline again but ultimately failed. After that, the asset experienced a sharp drop, making it uncertain when the next attempt will occur. However, the longer the currency remains locked within the channel, whether upward or downward, the greater the likelihood of a breakout.
Analysts believe that Pudgy Penguins is 'just one step away from a new round of increases.' Based on stock price movements, a potential bullish breakout could push PENGU to around $0.10. It remains to be seen how the price of this cryptocurrency will move in the coming days and whether it will break out of the bull flag pattern.
Penguin Price
At the time of this writing, Pudgy Penguins was trading at approximately $0.317, having dropped more than 7% in the past 24 hours.
