PENGU Soars 17% as Inflows Explode 630% - Here’s What’s Driving the Frenzy

Penguin token defies market gravity with massive capital injection

The Metrics Behind the Madness

PENGU isn't just swimming - it's flying. A staggering 6.3x surge in fresh capital flooded the token, catapulting prices 17% upward in what traders are calling the 'Arctic blast' rally. While traditional finance types scratch their heads over why a penguin-themed token would attract serious money, crypto natives are stacking gains faster than icebergs form in Antarctica.

Market Mechanics Unleashed

That inflow tsunami didn't just create ripples - it generated a liquidity wave that swept aside resistance levels like they were mere snowdrifts. The 17% price surge represents pure market physics: when capital rushes in faster than sellers can provide supply, prices have nowhere to go but up. Another day, another reminder that in crypto, sometimes the silliest narratives attract the smartest money - until they don't.

Key Takeaways

What triggered Pudgy Penguins’ latest price rebound?

Whales increased holdings by 3.2 %, while exchange supply dropped 8.78 %, confirming steady accumulation across top wallets.

What signals hint at a Q4 rally for PENGU?

Open Interest rebounded to $160 million with volume above $1 billion, suggesting renewed bullish momentum.

The memecoin sector took one of the sharpest hits during the recent market crash. Pudgy Penguins [PENGU] rebounded 17% as the new week began, tracking a broader altcoin recovery.

In terms of performance, PENGU reduced the quarterly returns to negative 7%. The second and third quarters were the most profitable, with 171.7% and 88.5%, respectively, as per CoinRank data.

This begs the question: how will this quarter perform?

PENGU chart shows a fragile recovery

On the 3-hour chart, PENGU stayed in a bearish structure but reclaimed part of the lost range. Price hovered NEAR $0.026 after plunging below the $0.028 – $0.040 zone and touching $0.005 during the crash.

Bollinger Bands widened at the drop, then narrowed as volatility cooled and price moved back above the mid-band—an early recovery signal.

Source: TradingView

However, PENGU needed to reclaim its support in the $0.030 region to spark a MOVE toward $0.040. The previous high was around $0.046, a reasonable target for the fourth quarter.

The reading of the Chaikin Money FLOW (CMF) was at 0.01, indicating capital was being deployed in the memecoin. Additionally, the MACD turned bullish after the crossover.

On-chain analysis showed the capital inflow data that drove the price in the last 24 hours.

On-chain data points to renewed accumulation

As per the Nansen AI analytics tool, “Smart Money” inflow had spiked by 6.3 times from the average. Still, whales were consistently longing for the memecoin following the crash to capitalize on the discount.

Spot accumulation on exchanges was also evident, as data showed Net Outflows.

About 8.78% of the Supply in Exchanges was withdrawn. Interestingly, top holders remained confident, as they did not sell even during this crash. In fact, they increased by 3.2%.

Source: Nansen AI

Capital inflow and conviction were not the only key driving factors, but also volume and spikes in long liquidations.

Open Interest rebounds as liquidations reset positions

Historically, long liquidations have sparked bullish reactions in crypto markets; for instance, the 5th of August crash sparked the rally seen in late 2024.

As per CoinGlass data, long liquidations hit $52 million.

Similarly, Volume in the last 24 hours improved with a reading of $1.07 billion at press time. CoinGlass data placed PENGU’s Open Interest at $160.27 million at press time, recovering from $134 million after a $342 million high.

Such resets have historically created short-term bullish setups across memecoins.

Source: CoinGlass

Altogether, the metrics showed strength on the day, but the ability to sustain depended on the broader market sentiment.

If capital inflows and Open Interest hold through Q4, PENGU could retest $0.040 — or even the $0.046 high — as long as broader sentiment stays risk-on.