PENGU jumps 14%: Will selling pressure become a springboard for a new upward trend?

PENGU records an impressive 14% increase in just 24 hours, rising to $0.007876, accompanied by a surge in trading volume of up to 112.08%, reaching $210.6 million. This development reflects strong and decisive participation of capital in the market.

After a prolonged period of weakness, the bulls have acted decisively, creating a significant expansion on the 4-hour timeframe. The upward momentum is reinforced as the price structure shifts to higher lows, completely replacing the previous breakdown pattern.

The increased volatility occurs alongside high participation levels, confirming genuine market confidence rather than technical rebounds driven by thin liquidity. Currently, PENGU’s price is approaching key resistance zones — areas that previously experienced supply pressure dominance.

To maintain the positive trend, buying pressure needs to be sustained; otherwise, the recent rally is likely to stall as the price approaches higher liquidity zones.

Reversal Double Bottom Pattern Reshaping Short-Term Structure

A clear double bottom pattern has been established around $0.005861, triggering an impressive recovery. Buyers have decisively defended this area twice, fully absorbing selling pressure and forcing the market structure to turn positive.

Following the strong rebound, the price quickly regained the 20 EMA at around $0.006969, indicating that the previous downtrend is now “nullified” on the 4-hour timeframe.

The upward movement is further supported as the $0.007275 level is transformed into support, reflecting increasing confidence and proactive behavior from the bulls.

Currently, the price is approaching and testing the key resistance zone at $0.0080 — an area that has repeatedly halted previous upward moves. A decisive breakout above this level could open new upside potential, with the next target around $0.0090.

Conversely, if profit-taking pressure emerges at the resistance, the market may enter a short-term consolidation phase around the recently reclaimed support zones before establishing the next direction.

Source: TradingView

In terms of momentum, RSI is at 73.49, while the signal line is around 64.64, indicating that buying strength is clearly dominant. Maintaining RSI above 70 is often associated with trend expansion rather than immediate reversal.

However, high volatility also means short-term cooling is possible if buying momentum suddenly weakens. Nonetheless, as long as the price remains above the 20 EMA, overall momentum favors continued upward movement.

Investors should closely monitor divergence signals if the price consolidates at resistance while RSI turns downward. Before such signals appear, the bullish structure remains well-supported.

In the long term, sustainable trend expansion depends on buyers maintaining continuous pressure and avoiding premature exhaustion of momentum.

Capital Outflows from Exchanges Suggest Tightening Supply

Netflow data at the time of writing shows –$106.49K, indicating more tokens are being withdrawn from exchanges than deposited.

The trend of asset withdrawal from exchanges reduces available supply for immediate trading, often reflecting holding and accumulation sentiment rather than distribution.

Although the withdrawal volume remains modest compared to the daily trading volume of $210.6 million, the consensus between outflows and rising prices helps reinforce the bullish case.

Even with moderate supply contraction, it supports the upward trend amid expanding demand. If withdrawals intensify or persist longer, the accumulation signal will become even clearer.

Overall, current data indicates liquidity on exchanges is tightening slightly, supporting the ongoing structural recovery reflected in the price chart.

Source: CoinGlass

Leading Traders Increase Long Positions as Leverage Rises

Data on top traders’ positions on Binance shows 56.06% Long versus 43.94% Short, with a Long/Short ratio of 1.28.

The dominance of longs reflects growing confidence among large-scale traders. Increased leverage usage could act as a catalyst for further gains, especially if the price successfully breaks through the resistance zone. However, the current state also raises the risk of a long squeeze if the price gets rejected around $0.0080.

Notably, the expanding Long/Short ratio indicates continuous influx of new capital rather than a static imbalance. This aligns with positive signals from spot market strength.

Overall, trend-following traders are clearly leaning bullish. However, high leverage remains a double-edged sword, capable of amplifying volatility in both directions. The market structure remains favorable, but a decisive breakthrough of the resistance zone is necessary to confirm the next trend extension.

Source: CoinGlass

Continued Breakout Depends on Market Confidence

Currently, PENGU is leaning strongly toward the continuation of the trend rather than an early reversal. Bulls still control the short-term structure, consistently applying pressure just below the resistance zone, indicating ambitions to extend gains to higher levels.

A convincing breakout above $0.0080 is likely to act as a catalyst, triggering the next upward wave toward $0.0090 without needing a deep correction.

If the price cannot immediately surpass the resistance, the bullish outlook remains intact, only temporarily delayed through a healthy consolidation phase.

Overall, the current market conditions favor a positive scenario, and the probability of trend continuation remains high as long as the price stays above previously reclaimed support zones.

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