Date: Thu, May 22, 2025 | 06:40 AM GMT
The cryptocurrency market has mounted a solid comeback in recent weeks following a sluggish first quarter. Bitcoin (BTC) melted faces today with a fresh all-time high of $111,861, while Ethereum (ETH) delivered an impressive 65% monthly surge. This resurgence is lifting overall sentiment across memecoins — including Pudgy Penguins (PENGU), which is now catching the attention of technical analysts.
PENGU has posted jaw-dropping monthly gains of over 189%, and a classic technical setup suggests there might be even more upside on the horizon.
Source: Coinmarketcap
Power of 3 in Play
A close look at PENGU’s 4-hour chart reveals a textbook “Power of 3” setup — a well-known structure that unfolds in three stages: accumulation, manipulation, and expansion.
Accumulation Phase
Between May 8 and May 16, PENGU consolidated in a tight range between ~$0.013 and ~$0.017. This sideways action, marked by low volatility, is typically where larger players accumulate positions quietly before the next move.
Pudgy Penguins (PENGU) 4H Chart/Coinsprobe (Source: Tradingview)
Manipulation Phase
On May 16, PENGU briefly plunged to around $0.0118 — a move likely designed to trigger stop-losses and scare out retail traders. This sudden dip is classic “shakeout” behavior, often seen before a bullish breakout.
Expansion Phase
Following the dip, PENGU rebounded strongly, reclaiming $0.013 support and climbing with strength while holding above the 50-day moving average. It’s now knocking on the door of the previous resistance near $0.017. A breakout above this level would signal the beginning of the expansion phase — where price accelerates rapidly, and “smart money” begins distributing into increasing demand.
What’s Next for PENGU?
The price is currently hovering just below $0.0143. If bulls can push PENGU past the key resistance level at $0.017, the measured move — based on the height of the previous range — targets $0.02145. This represents a potential upside of nearly 50% from current levels.
Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before investing in cryptocurrencies
