PENGU Price Surges Despite 95% Sentiment Drop — Is A Reversal Still In Play?

Pudgy Penguins (PENGU) is showing technical strength, trading within a falling wedge pattern that suggests a potential reversal following a significant downtrend. This is supported by bullish divergence on the RSI, where price made a lower low while RSI formed a higher low, indicating weakening selling pressure. Furthermore, on-chain data reveals that PENGU whales aggressively increased their holdings by 23.6% in 24 hours, signaling strong conviction from large holders.

However, this positive price action contrasts sharply with market sentiment, which has plummeted by about 95% since mid-January, suggesting the rebound lacks broad crowd excitement. Derivatives data also shows a risk, with long positions outweighing shorts by 160% on Binance perpetuals, creating potential for a long squeeze if the price dips. Key levels to watch are $0.0122 and $0.0131 for a confirmed breakout toward the wedge target near $0.022, while a drop below $0.010 signals increased liquidation risk.

(Source：BeInCrypto)