The Pudgy Penguins [PENGU] memecoin is experiencing a significant surge in bullish sentiment, hinting at a potential large-scale rally. This momentum is supported by increasing investor interest and a recent price breakout.
Key Highlights and Price Action
- Smart Money Preference: A Solana-based crypto community reported that PENGU was the most-bought memecoin by "smart money" investors in the past 24 hours, outpacing rivals like BONK, Jupiter [JUP], Moo Deng [MOODENG], and Useless [USELESS].
- Recent Price Jump: On October 5th, PENGU recorded a 4.75% gain over 24 hours, trading near $0.0332.
- Low Trading Volume: Despite the price increase, market hesitation is evident as the 24-hour trading volume dipped by 10% to $375 million.
- Catalysts: The bullish momentum is attributed not only to investor interest but also to a sentiment shift and price surge in Solana [SOL], on which PENGU is based.
- Breakout Confirmation: PENGU has successfully broken above a key resistance level at $0.03217. If it closes the daily candle above this level, the price could see a 20% uptick and potentially reach $0.040.
- Validation Level: The bullish outlook will be validated if PENGU holds above $0.0338, but invalidated if it falls below this point.
Mixed Technical Signals
While the price action is strong, technical indicators show a mixed picture:
- The Supertrend indicator is still red and sits above the price, suggesting the asset technically remains in a downtrend.
- The Average Directional Index (ADX) is at 15, which is below the key 25 threshold, indicating weak directional momentum.
Traders are Heavily Bullish
Traders' outlook has clearly shifted, with a significant increase in long positions:
- Liquidation Levels: Major liquidation points are identified at $0.03182 (lower) and $0.03442 (upper).
- Long vs. Short: Bulls are heavily dominating, holding $6.48 million in long positions versus only $1.35 million in short positions. This suggests that traders are betting heavily that the price will not drop below the lower liquidation level of $0.03182.
October 2025, Cryptoniteuae