Pudgy Penguins (PENGU) eyes 20% rally as smart money piles in

Key Takeaways

Why are traders bullish on PENGU?

PENGU is gaining traction as the most bought memecoin by smart investors, breaking past the $0.03217 resistance and signaling potential for a 20% rally toward $0.040.

What levels are traders watching closely?

Bulls expect PENGU to stay above $0.03182, with key liquidation zones between $0.03182–$0.03442.

The bullish sentiment around the Pudgy Penguins [PENGU] memecoin is heating up, indicating that a massive rally could be on the horizon.

Thanks to rising investor interest and a recent breakout, the door has now opened for upside momentum.

PENGU – The top choice of smart investors

Recently, a Solana-based crypto community shared a post on X (formerly Twitter), revealing that PENGU is gaining immense popularity among smart investors.

The community stated,

“PENGU is the most bought meme coin by smart money in the past 24 hours.”

Source: X (Formerly Twitter)

According to the post, BONK, Jupiter [JUP], Moo Deng [MOODENG], and Useless [USELESS] lagged behind PENGU in terms of smart investor interest.

Current price momentum 

On the 5th of October, PENGU posted a gain of 4.75% over the past 24 hours, trading near $0.0332. Despite the significant price increase, market participants remain hesitant, as evidenced by the low trading volume.

Data from CoinMarketCap revealed that the memecoin’s 24-hour trading volume dipped by 10% to $375 million.

The price jump in PENGU is not just due to investor interest or the recent breakout; another key catalyst strengthening the memecoin’s bullish outlook is the sentiment shift and notable price surge in Solana [SOL].

PENGU: Price action and upcoming level

According to TradingView’s four-hour chart, PENGU has turned bullish after breaking a key resistance at $0.03217, which it had been testing for the past four days.

The asset continued to soar, suggesting a successful breakout.

Source: TradingView

Based on the current price action, if the memecoin closes the daily candle above this resistance level, it could see a 20% price uptick and potentially reach the $0.040 level in the near future.

Despite strong bullish price action, PENGU’s Supertrend indicator continued to display a red trend and hovered above the memecoin’s price, indicating that the asset remained in a downtrend.

Meanwhile, its Average Directional Index (ADX) value stood at 15, below the key threshold of 25, indicating weak directional momentum.

PENGU’s bullish outlook could be validated as long as it holds above the $0.0338 level; otherwise, it would be invalidated.

Traders’ strong bullish outlook

Given the current market sentiment, it appeared that traders’ outlook on PENGU has shifted, as their long position bets continued to rise.

Data from CoinGlass showed that PENGU’s major liquidation levels stood at $0.03182 on the lower side and $0.03442 on the upper side.

Source: CoinGlass

At these levels, traders are also over-leveraged, holding $6.48 million worth of long positions and $1.35 million worth of short positions.

While examining the long and short positions, it appears that bulls are strongly dominating the asset, hoping that PENGU’s price won’t fall below the $0.03182 level.