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Key Takeaways
- PENGU rallied 50%, breaking its first Fibonacci target at $0.02.
- Technical and on-chain data suggest growing selling pressure, pointing to a potential pullback.
- Liquidity heatmaps show $0.0225–$0.023 as the next upside target, with $0.0175 as a possible demand zone.
The Pudgy Penguins [PENGU] token has seen a massive surge, climbing 50% from its low of $0.0143 on July 7. Fueled by Bitcoin’s new all-time high, the meme-inspired crypto broke past its first Fibonacci extension target at $0.02. But as euphoria builds, technical signals and on-chain data suggest a potential cooldown could be looming.
Bullish Momentum Fueled by Fair Value Gap and BTC Breakout
The 1-day PENGU/USDT chart highlights aggressive bullish demand, with the token pushing past the $0.0125 local highs from late June. Typically, such breakouts leave a fair value gap—a price area often revisited as a demand zone before continuation. However, this time, strong capital inflows and Bitcoin’s surge prevented a retest.
Indicators like the Chaikin Money Flow (CMF) consistently stayed above +0.05 through July, reflecting strong buyer interest. Simultaneously, the Money Flow Index (MFI) mirrored the price trajectory, reinforcing the bullish sentiment.
Still, emerging bearish divergence between the price and indicators suggests that buying momentum could be weakening, and a minor retracement may be in the cards.
Rising Selling Pressure: Profit-Taking Threatens Short-Term Stability
Despite the bullish structure, on-chain data from CryptoQuant shows rising selling pressure. The Spot Taker CVD indicates that market participants have shifted into a Taker Sell Dominant phase above $0.02, signaling potential short-term bearish sentiment.
The rapid price increase may have encouraged some holders to book profits, which could weigh on the token’s ability to push further without a healthy correction. A dip toward $0.0175 is on the radar, though aggressive buyers may not let the price fall that far.
Liquidity Zones Could Dictate Next Move
According to CoinGlass liquidation heatmaps, the $0.0225–$0.023 area holds a concentration of liquidity and could act as a magnet if the rally continues. On the downside, weaker liquidity clusters don’t reappear until around $0.018.
Also Read: PENGU Price Jumps 24% as SEC Acknowledges Spot ETF Filing
These zones will be crucial in the coming days. If sentiment remains bullish across the broader market, especially if Bitcoin continues its uptrend, PENGU may skip a retracement and push directly to the next extension level around $0.026.
Despite signs of cooling, Pudgy Penguins [PENGU] remains in an uptrend. A short-term retracement to $0.0175 could offer a buying opportunity, but strong demand might limit any significant pullback. The next price magnet sits near $0.023, while $0.026 looms as the longer-term bullish target.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
