- PENGU surged 8% after bouncing from the 0.618 Fibonacci level, often viewed as a strong bullish support.
- Analyst targets of $0.017 and $0.025 remain long-term scenarios, barring immediate bullish continuation.
Pudgy Penguins [PENGU] staged a sharp recovery on the daily chart, breaking out from a descending channel to hit $0.0125.
Since hitting these levels, though, the memecoin has fallen to a low of $0.01166.
Waddle back or break away?
Source: Ali Martinez on X
Naturally, this retracement raised eyebrows—but not all see it as a setback.
According to analyst Ali Martinez, the decline was a textbook correction to the 0.618 Fibonacci level, widely regarded as the “golden ratio” in bullish structures. In bullish markets, this level often acts as a springboard rather than a ceiling.
PENGU buyers didn’t flinch—they doubled down!
Source: Coinalyze
Thus, after reaching 0.618 support levels, buyers started to enter the market, pushing prices back up.
Spot buyers returned in force, absorbing 2.3 billion PENGU tokens on the dip. In fact, the Buy Volume outpaced Sell Volume for the first time in several days.
This shows that recent price retrace created a buying opportunity with buyers displacing sellers who entered the market to realize profit.
Amid high buying activity, Exchange Netflow turned negative for the first time in four days, signaling massive accumulation.
Source: CoinGlass
According to Martinez, with buyers stepping in, PENGU is now rebounding with strength, setting the memecoin up for more gains. To keep this upward momentum alive, the Pudgy Penguin bulls must push and reclaim $0.0123 and flip it to support.
He pointed to $0.017 as a mid-term target, with a more ambitious upside scenario stretching to $0.025.
Of course, the big question now is whether bulls have enough strength to hold their ground.
Can the Penguins fly….or at least jump that high?
According to AMBCrypto’s analysis, PENGU sentiment across derivatives remains optimistic. We can see this bullishness, especially when looking at the futures market.
The Aggregated Funding Rate stayed positive throughout the week, reflecting dominance by long traders.
As of press time, the metric stood at 0.0070, while the Predicted Funding Rate printed slightly higher at 0.0087.
Source: Coinalyze
Moreover, 57% of Futures Open Interest was held by long positions. This tilt in positioning suggests traders are willing to pay a premium to bet on upside.
As of now, a rally to $0.017 or $0.025 predicted by Martinez is far-fetched and is only plausible in the long term, with a mid-term target of $0.015.
However, if the latest move by bulls collapses, a correction with see PENGU drop to $0.010.
