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- PENGU rebounded 17% after one of the sector’s steepest sell-offs.
- Smart Money inflows surged 6.3x, signaling renewed accumulation.
- Open Interest and volume spikes hint at a potential Q4 rally.
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The memecoin market is showing early signs of recovery after one of its steepest declines this quarter. Pudgy Penguins (PENGU), one of the standout meme projects of 2024, has rebounded 17% to start the week, signaling that investors may be regaining confidence in risk-on assets.
Fragile Recovery After a Steep Sell-Off
After plunging below the $0.028–$0.040 support zone during the recent market crash, PENGU briefly touched $0.005 before bouncing back toward $0.026. The price structure remains bearish overall, but short-term indicators hint at renewed momentum.
Bollinger Bands, which widened during the crash, have since tightened—often a precursor to stabilization. Meanwhile, the Chaikin Money Flow (CMF) reading of 0.01 suggests modest capital inflows, while a bullish MACD crossover reinforces the recovery narrative.
If PENGU can reclaim support near $0.030, traders are eyeing the $0.040 and $0.046 zones as potential upside targets in Q4.
On-Chain Data Signals Accumulation
According to Nansen AI, “Smart Money” inflows into PENGU spiked more than sixfold from the recent average. This surge points to renewed accumulation by high-conviction traders following the dip.
Roughly 8.78% of the total token supply was withdrawn from exchanges, reflecting spot accumulation and long-term holder confidence. Interestingly, top holders increased their balances by 3.2%, showing they viewed the crash as a buying opportunity rather than a reason to exit.
Open Interest and Volume Show Market Reset
CoinGlass data shows that long liquidations reached $52 million, a reset that often precedes short-term bullish reversals. Trading volume also climbed to $1.07 billion, while Open Interest recovered from $134 million to $160 million—signs of re-entry and renewed speculation.
Also Read: Pudgy Penguins (PENGU) Eyes $0.0376 Breakout After 17% Weekly Surge
If capital inflows and Open Interest remain strong through the quarter, PENGU could revisit the $0.040–$0.046 range. Sustaining that rally, however, will depend on broader market sentiment and Bitcoin’s ability to maintain stability.
PENGU’s rebound highlights early recovery in the memecoin sector, backed by on-chain confidence and renewed liquidity. While risks remain, sustained inflows suggest the community’s belief in a Q4 turnaround is far from over.
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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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
