A new wave of optimism in the broader crypto market has rekindled interest in meme coins, with sector trading volumes increasing by 60% over the past 24 hours.
Leading prices are Pudgy Penguins (Pengu), which is the best cryptocurrency on the market as it surges 17% today.
When the Bulls return, Penn gets out of the slump.
Pengu prices have been struggling to get meaningful traction lately. Its unshiny performance weakened investors’ emotions and caused short position spikes. Even in the mid-day recovery moments, traders were almost persuasive and prevented them from making bullish bets.
But it looks like the current is turning now. New purchasing pressures and improved technical indicators suggest that the Bulls are finally regaining control.
Pengu’s funding rate has been positively flipped for the first time since the beginning of July, suggesting that traders are making longer and longer bets. At the time of writing, this is 0.0042%.
Funding rates are periodic payments exchanged between long-term and short-term traders in permanent futures contracts to maintain prices consistent with the spot market. In positive cases, long traders pay shorts, showing bullish emotions and higher demand for leveraged long positions.
Amid this new momentum, whales activity around Penger has picked up. According to Nansen, wallet addresses have increased their balances by just 1% over the past 24 hours, holding pengus over $1 million.
The group currently holds 2.15 billion tokens, accounting for 2.8% of the circular supply of memecoin. Although the accumulation is subtle, an increase in whale presence indicates increased reliability and if the trend continues it could provide short-term price support.
When Pengu clears the cloud, bull signal is mounted
At the time of writing, the pen is trading for $0.018. Pengu/USD’s daily chart measurements show that Meme Coin exchanges hands above its island clouds.
At press time, the main A and B forms of this indicator support $0.01405 and $0.0135 respectively, below Pengu price.
One-sided cloud tracks the momentum of asset market trends and identifies potential support/resistance levels. When assets trade on this cloud, it reflects bullish pressure in the market. This means demand is growing and bearish pressure is at bay.
If accumulation continues, Pengu can extend Rally to $0.0203.
However, if purchasing activity declines amid rising profits, Penn could reverse the current trend and drop to $0.0140.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
