PENGU investors were caught off guard by a sudden sell-off, causing panic among holders. However, the token is now showing signs of unexpected recovery. With liquidity tightening and active buyers returning, the question remains: is this merely a bounce-back... or the start of a surge?
The drop in PENGU price is closely tied to market liquidity flight. In just one day, outflows reached nearly $70 million, while the Open Interest on CoinGlass fell to $332.66 million.
This decline indicates that both long and short traders are exiting the market. Long positions were closed more frequently than short positions, with larger liquidations affecting long traders in recent days.
The Open Interest-weighted Funding Rate chart for PENGU shows a sharp collapse, dropping from 0.0265% to 0.0063%. This confirms that many long traders are no longer active. Despite these massive outflows, the Open Interest-weighted Funding Rate remained in positive territory, indicating that bullish interest still persists in the PENGU market.
CoinGlass Spot Exchange Netflow data shows investors continue to actively purchase PENGU. Over the past 72 hours, they bought more than $14.5 million worth of PENGU and transferred these assets to private wallets. This trend suggests fewer tokens are available on exchanges for potential sales.
On the chart, PENGU is approaching a key support level within a bullish triangle pattern, creating potential for a rebound. In fact, the chart structure indicates a minor decline before a bounce.
The technical indicators confirm this outlook. The Chaikin Money Flow (CMF) highlights a gradual increase in buying volume, with a reading of 0.04. This bullish trend suggests that buying activity should continue.
Meanwhile, the Average Directional Index (ADX) has fallen to 20.91, showing that bearish momentum is weak. When price diverges from ADX, it often indicates a lack of strength in the trend, increasing the probability of a reversal. Overall, despite the liquidity outflow, bullish sentiment is strengthening, suggesting that the bearish phase is likely temporary.
On the same topic:
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
