Negative funding hints at a short squeeze fueling upside.
A break above $0.013 could send PENGU toward $0.020.
The Pudgy Penguins (PENGU) community has waited months for a breakout moment, and it finally arrived.
Over the last 24 hours, PENGU’s price has surged 25%, making it one of the top performers out of the top 300.
Interestingly, the memecoin narrative has resurfaced.
But this rally raises new questions: what sparked this sudden momentum, what’s fueling ongoing demand, and how long can the wave last?
PENGU Reverses Downtrend
On the 4-hour chart, the Awesome Oscillator (AO) projects a sharply bullish outlook.
Expanding green histogram bars have surged above the zero line after weeks of subdued price action.
This surge confirms accelerating bullish pressure and shows that buyers have regained short-term control.
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From an on-chain perspective, Santiment data shows that the funding rate has turned negative.
At the same time, PENGU’s price continues to climb. This combination reveals a meaningful shift in market behavior.
When funding turns negative during a price increase, it signals that a growing share of traders are opening short positions and are willing to pay funding fees to long holders.
In other words, the crowd expects a pullback even as the PENGU’s price continues to push higher.
This type of setup usually indicates that the rally is moving against broader market sentiment.
As bearish positions pile up, the probability of a short squeeze increases. If short traders begin closing their positions, the resulting buy pressure can strengthen the uptrend and push the token’s market value even higher.
Traders Bet On PENGU Breakout
In the derivatives market, traders are displaying strong optimism about further price gains.
This shift is evident in the rise of long positions, as reflected in the open interest (OI) chart.
At the time of writing, OI has increased by 32%, indicating that bullish confidence is growing.
The jump in OI, paired with increasing trading volume and PENGU’s price increase, highlights a market preparing for a potential breakout.
Should the OI continue to jump, then the memecoin’s market value might extend its double-digit rally.
The Relative Strength Index (RSI) is approaching the midline and currently sits at 45.07, suggesting that PENGU’s price is recovering from recent selling pressure.
This recovery indicates a potential continuation of the bullish trend, with buyers gradually asserting dominance.
A closer look at the Fibonacci retracement levels reveals that the memecoin is trending toward the 0.236 Fib level at $0.013.
A break above this point could clear the path for a rally toward the immediate resistance at $0.020.
However, if the price fails to hold above the 0.236 level, sellers could regain control. If this happens, this could potentially push PENGU’s price back toward the support at $0.0093.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
