Key Takeaways
How has Pudgy Penguins’ official coin performed recently?
Since August, it has shown bearish tendencies, with the second half of September seeing PENGU retrace by 33% in a week.
What should traders and investors expect next for PENGU?
A move past $0.027 would be an early sign of a shift towards bullish strength.
The Pudgy Penguins [PENGU] token has rallied by 9% in 24 hours. This shift in short-term bullish sentiment came as Bitcoin [BTC] posted a 3.3% move higher to $115k while Ethereum [ETH] climbed by 7% in the same period.
The Pudgy Penguins NFT sales saw a dramatic pick-up in volume over the past month. The sales volume was particularly heavy just after the liquidation event on 10 October. The floor price fell from 10 ETH to 7.21 ETH as well.
The PENGU token has also shown bearish dominance since mid-August, after ceding the $0.032-support level. However, with its rally in June to $0.046 in mind, its swing structure has remained bullish.
Negative sentiment and steady selling hamper PENGU bulls
The weighted sentiment has been negative since late July. It hinted at bearish social media engagement, and any positive mentions had too little volume and not enough consistency to shift the trend.
The Open Interest has also been sinking for the most part since early August. Together, the two metrics highlighted bearish sentiment in social media posts related to PENGU and a lack of confidence in the derivatives market.
The selling was especially strong over the past month. The $0.03-support had been key in August and September, but was breached in October and the area retested as a supply zone. In October, the Coin Days Destroyed metric saw several sizeable peaks.
These peaks accompanied PENGU setting new lows and underlined persistent on-chain selling.
Source: PENGU/USDT on TradingView
Finally, the Fibonacci retracement levels captured the bullish swing structure of PENGU. However, the series of lower highs and lower lows since August highlighted the bearish trend of PENGU in recent weeks.
The CMF has not shown heavy, consistent selling pressure despite the downtrend. This may be a small spark of hope for bulls hoping for a turnaround in PENGU’s price fortunes.
The $0.027 is a key resistance to overcome, to flip the internal structure bullishly.
