Pudgy Penguins token, known as PENGU, has experienced a significant upward movement after the formation of an inverse head-and-shoulders pattern, a well-established technical signal indicating a possible change in direction.
This distinctive pattern is evident on the price chart, characterized by three successive troughs: the left shoulder, head, and right shoulder.
The breakthrough happened above the $0.028 resistance threshold, signifying a crucial milestone in confirming the uptrend.
Previously acting as a resistance level, $0.028 now serves as a support zone, with traders keenly observing its ability to hold. A successful defense of this price level upon retesting could reinforce the token’s upward momentum.
The breakout was accompanied by a notable surge in trading volume, indicating a boost in market confidence and buying activity.
Increasing Interest in PENGU Token
The 24-hour trading volume for PENGU has surged to $430.56 million, marking a 27.50% rise, as reported by Coinglass.
This surge in trading activity reflects a rising interest in the token, possibly triggered by the breakout and ongoing speculation regarding an upcoming Abstract airdrop for PENGU holders.
At the time of reporting, the market capitalization of this meme coin stood at $1.55 billion, with a circulating supply of 63 billion tokens.
Despite the bullish trend, PENGU witnessed a 27.06% decline in the past week, underscoring the mix of market enthusiasm and short-term volatility.
Growing Positive Sentiment
The Aggregated Predicted Funding Rates for PENGU were recorded at 0.0135, favoring long positions at the time of publication. From January 11 to 18, these funding rates consistently rose, reaching a peak of 0.03 before stabilizing above 0.01.
This continuous uptrend suggests that traders remain optimistic, despite minor fluctuations in Funding Rates post the peak.
Open Interest for PENGU has also risen by 10.52% to $174.19 million, indicating that traders are positioning themselves for potential price shifts.
These data points signal a sustained bullish sentiment, reinforced by the successful breach of crucial technical levels.
Potential All-Time High for PENGU?
As of the current report, PENGU was priced at $0.02464, showing a 4.58% increase in the last 24 hours. Nevertheless, it has yet to surpass the critical $0.028 resistance level highlighted by cryptocurrency analyst Cas Abbé, who remarked,
“Once that level is breached, the PENGU rally is likely to resume, potentially pushing it to a new all-time high in the weeks ahead.”
With a strong community base comprising over 100,000 holders and listings on Tier-1 exchanges, PENGU is well-positioned for future growth.
However, sustaining this positive momentum will necessitate ongoing trading volume and support at key price points. Traders are especially attentive to a retest of $0.028 as the next milestone towards surpassing the all-time high levels above $0.035.