PENGU Defies $70M Outflows with Bullish Resurgence – Are the Bulls Working Overtime?

PENGU stages a stunning comeback despite massive capital flight—traders are betting big on a rebound.

Market Mechanics: How $70M Exits Failed to Sink the Ship

While $70 million fled the ecosystem, PENGU’s price action tells a different story. The token’s resilience hints at underlying strength—or just another case of crypto traders ignoring fundamentals for hype. Whales are accumulating, retail FOMO is building, and the charts are flashing green against all odds.

Bullish Signals: Technicals Trump Outflows

Breaking key resistance levels, PENGU’s momentum defies traditional logic. Trading volumes spike, social sentiment soars, and derivatives activity suggests leveraged longs are piling in. It’s either a masterclass in market psychology or a reminder that in crypto, liquidity flows where narratives lead—not where balance sheets dictate.

Outlook: Sustainable Rally or Dead Cat Bounce?

If the bulls sustain this pressure, PENGU could reclaim its glory days. But let’s be real—this is the same market where 'fundamental analysis' sometimes means 'following a meme account.' Proceed with optimism, but keep an exit strategy sharper than a hedge fund’s fee structure.

Key Takeaways

A $70 million liquidity drain slashed PENGU’s gains, but Funding Rates stayed positive. Conflicting signals leave traders questioning whether bearish pressure is fading or not.

Liquidity outflow in the market led Pudgy Penguins [PENGU] to lose more than 9% in 24 hours, cutting its monthly performance to 23% as of press time.

Still, analysis showed signs of growing bullish activity, which could overturn the bearish outflow and position PENGU for a new high.

Liquidity scarcity forces PENGU lower

The drop in PENGU’s price was closely tied to liquidity leaving the market. In just one day, the outflow reached roughly $70 million, while Open Interest on CoinGlass fell to $332.66 million.

This decline indicated that both long and short traders are pulling back from the market. Long traders closed more positions than shorts, with liquidations on the long side notably higher in the past day.

Source: CoinGlass

At the same time, the Funding Rate dropped sharply. To be detailed, the OI-Weighted Funding Rate fell from 0.0265% to 0.0063% — confirming that many long traders are no longer active.

Despite the outflow, the OI-Weighted Funding Rate remained in positive territory, signaling that bullish interest is still present in the market.

Buyers stayed active despite pressure

CoinGlass Spot Exchange Netflow showed investors were still actively buying.

In the past 72 hours, investors purchased over $14.5 million worth of PENGU and moved assets into private wallets. This trend suggested fewer tokens were available on exchanges for potential sell-offs.

Source: TradingView

On the chart, PENGU is approaching a key support level within a bullish triangle pattern, creating the potential for a rebound.

In fact, the chart structure indicated a possible minor drop before a rebound.

Drop-to-rally setup confirmed

Technical indicators confirm this sentiment.

The Chaikin Money FLOW (CMF) highlights a gradual increase in buying volume, with a reading of 0.04. This upward trend suggests bullish activity will likely continue.

Source: TradingView

Meanwhile, the Average Directional Index (ADX) fell to 20.91, showing that bearish momentum was weak. When price diverges from the ADX, it often indicates a lack of strength in the trend, raising the likelihood of reversal.

Overall, despite the liquidity outflow, bullish sentiment was growing, suggesting the bearish phase was likely temporary.