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).
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.
However, the broader crypto environment still plays a key role. Continued strength in Ethereum and sustained momentum across memecoins will likely be essential tailwinds for PENGU’s next leg up.
Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before investing in cryptocurrencies.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
