PENGU at a Crossroads: Will It Dodge the 18% Drop? Watch These 2 Critical Signals

PENGU traders are sweating bullets as the token teeters on the edge of an 18% correction. Here’s what could save it—or sink it.

The Make-or-Break Signals

First: Watch for a decisive hold above the $2.30 support level. If it cracks, panic selling could trigger the plunge.

Second: Monitor trading volume. A surge in buys here could signal whales accumulating—their favorite pastime before pumping and dumping retail traders.

The Bottom Line

PENGU’s fate hinges on these two factors. Ignore them, and you might as well donate your portfolio to the 'greater fool' theory. Because in crypto, fundamentals are just bedtime stories for bagholders.

Key Takeaways

PENGU rallied 16% and neared $0.0436 resistance, but rising Exchange Inflows, a bearish Long/Short Ratio, and increased short exposure raise correction risks as traders anticipate a potential rejection from this level.

Amid the ongoing market recovery, Pudgy Penguins [PENGU], a solana [SOL]-based memecoin, posted a 16% rally that pushed it to $0.0426, at press time, just shy of a key resistance level.

But on-chain data now signals possible turbulence ahead.

PENGU hits resistance again

The current uptrend has brought PENGU close to $0.0436, a level where the token previously faced an 18% rejection. If the rally stalls again, a short-term pullback could follow.

At the time of writing the Trading Volume jumped 15% in the last 24 hours, reflecting heightened retail and investor activity. Still, the test of resistance is critical—either bulls breach the ceiling, or bears reclaim control.

On the 4-hour chart, PENGU has broken past a descending trendline, flipping the structure bullish. It now trades above the 21-period Exponential Moving Average, signaling upward bias.

Source: TradingView

Chaikin Money FLOW stood at +0.10, indicating continued capital inflow and healthy demand.

However, price remained locked below the $0.0436 resistance band, and any failure to break above could trigger profit-taking.

If bulls succeed in clearing this hurdle, the next leg up could retest the previous high and potentially chart a new ATH.

Bearish on-chain metrics cloud the rally

Despite bullish signals, on-chain metrics paint a more cautious picture.

CoinGlass data showed $2.03 million Net Exchange Inflow of PENGU in the last 24 hours, as of press time.

Source: CoinGlass

This significant inflow into exchanges suggests a potential sell-off, indicating selling pressure and further downside momentum, which PENGU is currently experiencing.

At the same time, the Long/Short Ratio dipped to 0.95, with Short Positions (51.06%) now outnumbering Long Positions (48.94%).

This shows increased bearish speculation, with traders expecting a rejection NEAR resistance.

Source: CoinGlass

While the short-term trend remains bullish, rising Exchange Inflows and negative sentiment in the derivatives market hint that a correction could be next.

Unless buyers step in with strong volume and flip the $0.0436 zone, PENGU may revisit the lower support range around $0.038.