- PENGU reclaimed $0.013 support and now trades at $0.01351, facing strong resistance at $0.018.
- Liquidations and technicals highlight critical $0.018 resistance as the breakout trigger zone.
Pudgy Penguins [PENGU] has continued its bullish rebound after flipping the SuperTrend indicator, reclaiming ground above the $0.013 support zone.
The memecoin has shown resilience despite recent pullbacks, with traders closely watching the $0.018 resistance.
At the time of writing, PENGU traded at $0.01351, reflecting a 3.97% decline in the last 24 hours.
However, the upward trend remains intact, and a breakout above $0.018 could send the price toward the $0.025 Fibonacci level, reinforcing bullish momentum.
Source: X/Ali
Quiet confidence in PENGU?
On the 15th of May, PENGU recorded outflows of $16.12 million against inflows of $13.73 million. This $2.39 million Net Outflow reflects ongoing accumulation as investors continue withdrawing from exchanges.
Historically, sustained outflows tend to decrease selling pressure, creating favorable conditions for price appreciation.
Source: CoinGlass
Besides, PENGU’s derivatives market has seen a notable uptick.
Trading volume soared 177.07% to $1.05 billion, while Open Interest climbed 6.9% to $124.03 million.
However, the slower rise in Open Interest compared to volume indicates short-term speculation without long-term conviction. Consequently, traders may still be cautious despite the recent momentum.
Therefore, the lack of significant commitment in Open Interest shows that the broader market awaits a confirmation before taking larger directional bets.
A trap for bearish traders?
Interestingly, Long Liquidations totaled $390.03K, far exceeding $30.63K in short liquidations.
Exchanges like Binance and Bybit recorded the most long-side losses, indicating that bulls were caught off guard by the minor price drop.
This spike in long liquidations signals reduced buyer conviction around the $0.018 level.
Hence, this rejection emphasizes the importance of this resistance. Buyers must show strength above this zone to regain control and prevent further downside pressure.
Source: CoinGlass
Despite the recent rally, Funding Rates on Binance dropped to -0.02069%, reflecting a persistent bearish bias in the derivatives market.
Traders are still willing to pay to maintain short positions, showing hesitation to accept the ongoing uptrend.
That said, negative Funding Rates sometimes precede short squeezes, especially if price trends upward and shorts get caught offside.
Are PENGU technicals lining up for a bigger breakout?
Technicals continue to align in favor of bullish continuation.
The Parabolic SAR dots trail closely below price, offering dynamic support around $0.0175. The Directional Movement Index (DMI) shows a clear upward bias, with DI+ at 25.93 significantly above DI− at 15.88.
Meanwhile, the ADX reads 25.33, confirming the presence of a strengthening trend. This combination indicates buyers are gaining traction.
Therefore, if bulls manage to flip the $0.018 resistance, momentum could build rapidly, propelling PENGU toward the $0.025 Fibonacci extension zone.
Source: TradingView
Conclusively, PENGU is steadily building a bullish case with consistent outflows, rising volume, and favorable technicals.
While long liquidations and negative funding hint at uncertainty, they also create fuel for a potential breakout.
If bulls reclaim $0.018 convincingly, momentum could accelerate and send PENGU toward the $0.025 Fibonacci target.