Pudgy Penguins: Is a new bull run setting up? Examining…

Key Takeaways 

How does PENGU’s short-term trend look?

It confirms a shift toward bullish momentum as buyers reclaim control above $0.021 levels.

What do recent exchange outflows and whale activity suggest?

Outflows totaling $863K and renewed whale accumulation indicate reduced sell pressure and growing confidence.

The market structure of Pudgy Penguins [PENGU] has started to show promising signs of recovery as the TD Sequential buy signal gets validated, aligning with consistent exchange outflows and renewed whale accumulation. 

The confluence of technical and on-chain metrics suggests momentum is shifting in favor of buyers.

Price movements consolidating within a bullish pattern that could soon trigger a breakout toward higher Fibonacci targets.

An explosive upside toward Fibonacci targets

A clear cup-and-handle formation is visible on the weekly chart, reflecting gradual recovery momentum after a prolonged correction. 

The handle consolidation appears nearly complete, positioning PENGU for a potential breakout above the 1.0 Fib level at $0.0218. 

If confirmed, the Fibonacci extensions at 1.618 ($0.0305) and 2.618 ($0.0447) could serve as the next price targets. 

Additionally, the liquidation heatmap shows heavy clusters between $0.023 and $0.0238, which could spark a short squeeze once liquidity is triggered.

Such a move would likely strengthen the bullish narrative across spot and derivatives markets.

Source: TradingView

Investors pull $863K from trading platforms

Spot flow data reveals a net outflow of $863K on the 21st of October, confirming that holders were moving tokens off exchanges. This trend reduces sell pressure and reflects growing investor confidence. 

Interestingly, the magnitude of these outflows has increased alongside the recent TD Sequential confirmation, reinforcing the notion that accumulation is underway. 

Moreover, historical data shows that similar withdrawal spikes often precede upward continuation patterns. 

However, sustaining this momentum will require consistent buying from both retail and institutional segments.

Source: CoinGlass

Large holders return to Pudgy Penguins

Data from CryptoQuant showed an uptick in large whale order sizes, signaling renewed institutional and high-net-worth participation. 

This pattern, marked by clusters of green whale orders, mirrors previous accumulation zones that preceded significant uptrends. 

The alignment between on-chain accumulation and technical breakout potential creates a favorable setup for a rally. 

However, continuous accumulation remains key for validating this bullish outlook, especially as PENGU approaches resistance near $0.023.

Source: CryptoQuant

Is PENGU ready for a decisive breakout?

The convergence of bullish signals across both technical and on-chain metrics strengthens PENGU’s short-term recovery prospects. 

A confirmed breakout above $0.023 could open the path toward $0.03 and beyond, supported by consistent whale buying and reduced exchange supply. 

While momentum looks promising, sustained accumulation and breakout confirmation remain essential to validate the next major rally.