Trusted

PENGU Leads Market with 6% Spike – How Long Can It Hold?

1 min
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • PENGU outflows of $1.14M signal traders selling amid price rallies, showing profit-taking trends.
  • CMF at -0.19 indicates weak buying pressure despite price increases, suggesting potential price reversals.
  • PENGU trades at $0.025; further declines to $0.022 are possible unless demand surges, which could push it to $0.030.
  • promo

Pudgy Penguins (PENGU) has become the market’s top gainer, rising 6% in the past 24 hours. At the time of writing, the meme coin is trading at $0.025.

Despite the price surge, the increase has prompted a wave of selloffs, casting doubt on the sustainability of its recent gains.

Pudgy Penguins Holders Offload as Price Climbs

The outflows from PENGU’s spot market on Thursday reflect the profit-taking activity among holders. According to Coinglass, this totals $1.14 million.

When an asset sees spot outflows during a price rally, it indicates that investors are selling their holdings despite the rising value. This often reflects profit-taking and suggests a lack of long-term confidence in the price surge.

PENGU Spot Inflow/Outflow. Source: Coinglass

At press time, PENGU’s Chaikin Money Flow (CMF) is below zero at -0.19 on the daily chart. This forms a bearish divergence with the token’s rising price, hinting at a potential reversal. 

The CMF measures the cumulative flow of money into or out of an asset over a specified period, indicating buying or selling pressure. When the CMF is negative while an asset’s price is rallying, it suggests that the rally is occurring without strong buying interest. This signals a weakness in the price movement and a higher risk of a reversal.

PENGU CMF.
PENGU CMF. Source: TradingView

PENGU Price Prediction: Token Could Drop To All-Time Low

PENGU trades at $0.025 at press time, slightly above the support formed at its all-time low of $0.022. If buying activity wanes, the token’s price could fall toward this level in the near term.

PENGU Price Analysis.
PENGU Price Analysis. Source: TradingView

However, the actual demand for the altcoin would invalidate this bearish thesis. In that scenario, PENGU’s value could climb to $0.030.

Best crypto platforms in Europe | January 2025
Wirex Wirex Explore
YouHodler YouHodler Explore
eToro eToro Explore
Phemex Phemex Explore
Zoomex Zoomex Explore
Best crypto platforms in Europe | January 2025
Wirex Wirex Explore
YouHodler YouHodler Explore
eToro eToro Explore
Phemex Phemex Explore
Zoomex Zoomex Explore
Best crypto platforms in Europe | January 2025
Wirex Wirex
YouHodler YouHodler
eToro eToro
Phemex Phemex
Zoomex Zoomex

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Untitled-1.png
Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
READ FULL BIO
Sponsored
Sponsored