PENGU remains in focus as traders assess its next move. The token trades at $0.01218 after posting modest recent gains. Chart-based analysis suggests the underlying structure carries greater importance than short-term price changes.
The meme coin sector remains highly volatile. PENGU has experienced major price swings since its debut. Now, market participants search for clarity on where the token might head next.
PENGU Tests Critical Resistance Zone
According to crypto analyst EliZ, PENGU faces a defining moment at current levels.
The trader emphasized that price action below a key weekly resistance zone remains directionless. Until PENGU closes above this red box area, movements are merely noise.
“Anything below that is just noise, technical rebounds and fragile movements,” EliZ stated on social media.
The analyst urged traders to focus on meaningful zones rather than short-term fluctuations. This perspective challenges those looking for quick directional plays.
At press time, CoinGecko data show PENGU trading at $0.0119, with 24-hour volume at $115.26 million. The token gained 1.64% in the past day.
Over the week, it slipped just 0.04%. This sideways action reflects the uncertainty EliZ described in the technical breakdown.
Accumulation Zone Could Signal Strength
EliZ highlighted a green zone as the only area worth monitoring closely.
If PENGU stabilizes there and consolidates properly, it could indicate accumulation by informed players. This would represent a significant shift in market dynamics.
The analyst stressed that time matters more than price in this scenario. Solid construction in the accumulation zone must precede any upward expansion.
Reversing this order means chasing market noise, according to the breakdown.
Patience becomes critical for traders waiting for genuine reversal signals. EliZ’s framework suggests that premature entries below the resistance zone carry substantial risk.
Only after proper base-building would expansion make sense.
Daily Chart Shows Bullish Structure Emerging
An analysis on TradingView reveals PENGU has shifted into a short-term bullish pattern.
The token formed a base near $0.0088 to $0.0090 before breaking higher. It recently touched $0.0130 before pulling back to current levels.
PENGU daily price chart has shifted to a short-term bullish pattern, Source: TradingView
Current consolidation between $0.0121 and $0.0122 suggests healthy profit-taking rather than a reversal. The chart now displays higher lows and higher highs. This confirms a trend change from the previous downtrend that dominated earlier price action.
Immediate resistance sits at $0.0128 to $0.0130, marking the recent swing high. Support levels rest at $0.0115, with stronger backing near $0.0108 to $0.0110. Holding above $0.0115 maintains a bullish outlook for the near term.
Volume expanded during the recent breakout, signaling strong buyer participation. The subsequent volume contraction during consolidation appears constructive. This pattern typically precedes continuation rather than reversal in trending markets.
Key Indicators On the Look
The RSI reads 58 to 59, sitting comfortably above the 50 midpoint. This shows buying pressure continues without reaching stretched levels.
The indicator hasn’t flashed any warning signs yet.
Meanwhile, the MACD holds in positive territory. The histogram bars stay green, though the pace has eased slightly. No bearish crossover has formed, suggesting the uptrend remains intact for now.
Traders are watching the $0.0115 level closely. If PENGU stays above this support, another push toward $0.0130 could develop.
A clean break above that resistance might open the door to higher prices. But a drop under $0.0110 would change the picture and likely trigger more consolidation.
Source: https://www.livebitcoinnews.com/pengu-technical-breakdown-no-direction-until-this-level-breaks/
