PENGU cryptocurrency could break resistance and appreciate up to 200%, analyst says

• Technical analysis indicates bull flag in PENGU
• Pudgy Penguins Near Possible Bullish Breakout
• PENGU Price May Seek $0,10 Soon

Pudgy Penguins (PENGU) is attracting attention in the cryptocurrency market after a chart pattern in its 4-hour movement suggested the possibility of a strong rally. According to analyst Ali Martinez, the asset is forming a bull flag, a classic technical analysis pattern that usually indicates the continuation of upward trends.

At the time of writing, PENGU is quoted at US$ 0,03015 with drop of 9% in the last 24 hours.

This type of pattern occurs when an asset's price rises rapidly in a movement known as a "flagpole" and then enters a consolidation phase within a parallel channel, which forms the "flag." For traders, a breakout of the upper line of this channel is seen as a signal of continued upward movement, often projecting an increase equivalent to the size of the initial flagpole.

Martinez highlighted in his analysis published on X that the memecoin may be about to confirm this movement: “$PENGU is inches away from a new high — $0,10 next!”The analyst expects that if the upper resistance is broken, the price will advance towards the US$0,10 mark, which would represent a significant appreciation in the short term.

$PENGU is inches away from a new leg up — $0.10 next! pic.twitter.com/dlk4slbOrS

However, the recent chart shows that PENGU faced rejection when testing the upper part of the channel, returning to within the flag structure. This reaction indicates that selling pressure is still present, and the asset remains stuck in a range that could either delay or strengthen a potential future breakout.

It's worth remembering that, just as there is a bull flag, there is also a formation known as a bear flag, which represents continued declines after a sharp downward movement. In the case of PENGU, the current configuration is bullish, but confirmation depends on a consistent close above the resistance line.