Pudgy Penguins (PENGU) is exhibiting a strong confluence of technical and on-chain signals, suggesting a significant shift towards bullish momentum and a potential market recovery. Both chart patterns and investor behavior indicate growing confidence and reduced selling pressure, positioning PENGU for an upward trajectory.
Technical Indicators Point to an Impending Breakout
The market structure for Pudgy Penguins [PENGU] is demonstrating clear signs of recovery, underscored by a validated TD Sequential buy signal. A prominent cup-and-handle formation on the weekly chart indicates a gradual rebound after a prolonged correction. This pattern positions PENGU for a potential breakout above the $0.0218 Fibonacci level. Should this be confirmed, subsequent targets could reach $0.0305 and even $0.0447. Furthermore, significant liquidation clusters between $0.023 and $0.0238 suggest the potential for a short squeeze, which would further fuel the bullish narrative across both spot and derivatives markets.
On-Chain Data Reinforces Growing Confidence
Complementing the positive technical outlook, PENGU's on-chain data reflects robust investor confidence and reduced selling pressure. Recent spot flow data on October 21st revealed a substantial net outflow of $863K from trading platforms, indicating that holders are actively moving tokens off exchanges, a common precursor to upward continuation. This trend is further bolstered by renewed whale accumulation, with large holders increasing their order sizes. Such patterns of institutional and high-net-worth participation have historically preceded significant uptrends, creating a favorable setup for PENGU's rally. The convergence of these powerful technical and on-chain indicators paints a compelling picture for PENGU's short-term prospects. While momentum is undoubtedly promising, the sustained accumulation from both retail and institutional investors, alongside a confirmed breakout above critical resistance levels, will be crucial in validating the next major rally.
