Key Takeaways:
- The market cap of top memecoins rose by 8.9% over the past week.
- According to the trader @ali_charts, PENGU mimics the price action of PEPE, and the trader predicts PENGU to $0.70.
- Low current social dominance suggests the rally isn’t hype-driven yet, but a spike in social media activity could trigger stronger gains.
The broader cryptocurrency market remains positive, as the top three crypto coins by market capitalization (cap) hold near their all-time high (ATH) levels. Bitcoin (BTC), Ethereum (ETH) and XRP are up by 2.5%, 1.5% and 4% respectively over the past 24 hours at the time of writing.
The market cap of top memecoins has increased by 8.9% in the last week, rising from $67.95 billion to $74.65 billion, according to CoinmarketCap.
Famous trader, Ali Martinez, going by the username @ali_charts with over 148K followers on X, tweeted about the price action of Pudgy Penguin (PENGU). Pudgy Penguin has become a global intellectual property brand that began as a collection of 8,888 ETH NFTs and has now grown to encompass real-world toys and apparel, banking on memes to create a global community.
According to Ali, PENGU could be on the way to a massive rally. In his recent tweet, Ali is comparing the current chart of PENGU to the explosive rise of PEPE, which is the third-largest memecoin by marketcap. PEPE is a popular, deflationary meme coin on the ETH named after the “Pepe the Frog” internet meme, intending to become the top meme-based digital asset with no taxes or intrinsic utility.
The trader uses a fractal trading approach to predict PENGU’s next wave. The fractal trading approach implies that when you notice a repeating price pattern in one asset and see the same pattern being formed in another. In this case, he displayed PENGU’s chart beside PEPE’s. According to the previous price movement, they’ve moved in a surprisingly identical manner so far.
Based on the chart, here’s what happened with PEPE: after trading sideways for a while, it burst out quickly, surpassing major Fibonacci extension levels, which traders use to set goals. It first reached 1.272, then accelerated to 1.618 before slowing down. We see a correlation in the pattern of PEPE being depicted in PENGU’s price chart. PENGU started a strong rally from the levels of $0.0037, after which it consolidated, then broke out again toward its first major price target. If this pattern continues to match $PEPE’s, the next potential milestones for PENGU would be around $0.24 and, in a bigger move, $0.70.
However, just because two charts appear to be similar does not mean they will move in the same way. Markets can shift rapidly, and patterns might fail.
For the time being, traders are keeping a careful eye on $PENGU to see if it will stick to $PEPE’s “roadmap,” and if it does, the $0.70 target may be more than just speculation.
This graph compares PENGU’s price (green) to its social dominance (red), which measures how much it’s mentioned in crypto-related conversations on social media. The rise of social dominance in late June and mid-July has previously coincided with large price increases, demonstrating that excitement frequently causes dramatic swings. Price is currently going higher, but social dominance is low (0.37%), indicating that the rise is not yet driven by enthusiasm. If social media attention surges again, it could serve as a catalyst for another significant breakthrough.
