PENGU shines with $1.08M inflows, surging trading volume, and increased social engagement. Despite negative funding rates, bulls aim for a Fibonacci target at $0.044. Is a bullish breakthrough imminent ?
At the time of writing, PENGU was recording net inflows of $1.08 million on spot markets – a strong indicator of renewed interest among investors.
This significant increase follows weeks of generally weak flows, suggesting a shift in sentiment. Typically, such inflows are associated with accumulation phases and potential bullish continuation patterns. If inflows remain above the million-dollar threshold, this could confirm strengthening demand.
Indeed, social indicators have rebounded in recent days, with social dominance rising from 0.18% to 0.30%. This recovery follows a decrease in social discussions toward the end of June. This renewed attention suggests awakening interest in the project, with a gradual increase in social volume, indicating a revival of community engagement. Such social resurgences often precede or coincide with bullish price movements as retail investor interest resurfaces.
Spot transaction volume has entered the “Heating” phase, according to the volume bubble map, signaling greater participation. These phases are typically associated with increased price momentum and expanded visibility on exchanges. If the rising volume persists and prices remain above their structural support, this could mark the beginning of a bullish trend.
Despite a persistent negative funding rate of -0.0189%, the long/short ratio has risen to 1.033, with longs slightly ahead at 50.83%. This divergence underscores bulls’ growing willingness to take positions, even at a funding cost.
If the funding rate begins to normalize while maintaining a long bias, it could fuel a breakthrough based on momentum and challenge the selling pressure observed throughout July.
As trader Honey indicates, PENGU is forming a promising “cup and handle” pattern.
“It looks like we’re forming a large cup and handle, which would be confirmed by a breakout of 0.017c. 0.017c has been tested multiple times and, given the recent partnerships and news, particularly regarding ETFs, I think the question is when, not if, we’ll break through this resistance,” she writes.
Despite funding headwinds, the alignment of increasing inflows, rising volume, and social resurgence thanks to news and partnerships could offer a major bullish scenario.
If the price continues to hold above the breakout level with consistent accumulation and a bullish market structure, progression toward the Fibonacci extension at $0.044 would be achievable in the short term. For this to happen, PENGU will need to break through the resistance at $0.017 and then the zone between $0.02 and $0.025. In case of a pullback, support at $0.0137 (which is also a POC) will need to withstand sellers to avoid dropping lower.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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