The popular Solana-based memecoin Pudgy Penguins (PENGU) is drawing the attention of crypto enthusiasts due to its strong performance over the past week. Today, following a 12% price surge, the memecoin hit a level that could potentially open the door for a massive upside move.
At press time, PENGU had climbed by over 12.13% in the last 24 hours and was trading at $0.0081. Meanwhile, during the same period, trading volume surged by 170% – A sign of strong interest from market participants.
This hike in trading volume is not only evidence of heightened participation, but also that traders and investors may be interested in the memecoin’s ongoing trend.
PENGU – Traders and investors turn bullish!
While analyzing data from the derivatives tool Coinglass and the analytics platform Nansen, it would seem that both investors and traders may be reinforcing the current trend by betting on long positions and accumulating the token.
The latest data from PENGU’s Exchange Liquidation Map revealed that intraday traders were strongly positioned at $0.00735 on the downside and $0.00824 on the upside. At these levels, they built $3.11 million worth of long-leveraged positions and $815K worth of short-leveraged positions (Currently on the verge of liquidation).
This suggested that trader sentiment might be tilted towards the bullish side. Especially since they appeared to believe that PENGU is unlikely to fall below the $0.00735-level anytime soon.
On the other hand, investors have ben accumulating.
Fresh wallets recorded inflows of $327K worth of the memecoin – Double the average over the last 24 hours. Over the same period, PENGU whales also increased their holdings by 881.89 million tokens – Equivalent to 3.90%.
Memecoin eyes 22% price jump
According to AMBCrypto’s technical analysis, PENGU appeared to be at a make-or-break level on the daily chart. Especially since it was facing a key resistance at $0.00815 at press time.
Since the beginning of February, the memecoin has reached this level multiple times. However, it has always failed to break above it, resulting in price reversals.
This time, however, the reversal can be avoided if PENGU closes a daily candle above the $0.0085-level. If this occurs, there is a strong possibility that the memecoin could see another 22% price jump and potentially reach the $0.0104-level.
However, a reversal could also occur if it fails to break above this level.
At press time, the technical indicator Average Directional Index (ADX) which measures trend strength, stood at 20.11, below the key threshold of 25 – Indicative of weak directional momentum.
As expected, these findings have fueled several predictions. In a post on X, one such expert shared PENGU’s daily chart where it appeared that the memecoin could be breaking out of a prolonged descending trendline. Marking this breakout, the expert noted, “expecting a +250% bullish rally.”
All these things together might be signs of PENGU’s strong upside potential. The memecoin might see significant hikes in the coming days. However, that could be possible only if it clears the hurdle of $0.00815.
Final Summary
- With a 12.05% price jump, PENGU could be approaching a successful breakout and a 22% price uptick.
- Market participation hinted at strong interest in the asset, with whales increasing their holdings by 4.01% too.
