PENGU Defies Market Slump with 10% Rally—Is a Sharp Correction Around the Corner?

While the broader crypto market naps, PENGU just woke up swinging—posting a double-digit surge that’s turning heads. But don’t pop the champagne yet.

Greed signals flashing? This meme coin’s parabolic move smells like FOMO fuel—the kind that usually ends with a ‘rekt’ tweet and a 30% retrace. Traders chasing the pump might soon learn the hard way: what goes up fast in crypto often comes down faster (unless you’re a VC token, which somehow always gets parachutes).

Key levels to watch: If PENGU loses its 10% gain footing, liquidity hunters could trigger a cascade. Meanwhile, ‘smart money’ whales are probably already flipping longs into shorts—because in crypto, the only free lunch is the one you take from retail.

PENGU Faces Resistance and Bearish Bets

Between May 14 and June 26, PENGU traded within a descending parallel channel, struggling to gain upward momentum. A breakout followed, leading to a price rally now pushing the altcoin toward its May 14 high.

However, technical and on-chain readings suggest that buying pressure may be losing steam, and PENGU risks a pullback in the short term. For example, the token’s Relative Strength Index (RSI) is 72.16 at press time, indicating that PENGU is overbought and could witness a reversal.

The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and due for a price decline, while values under 30 indicate that the asset is oversold and may witness a rebound.

At 72.16, PENGU’s RSI shows the altcoin in the overbought territory. This suggests that the buying pressure may be unsustainable in the short term, increasing the likelihood of a pullback or price consolidation as momentum cools. 

Moreover, the token’s aggregated funding rate across the derivatives market has remained significantly negative over the past few days. This is a sign that bearish sentiment is growing among Leveraged traders. At press time, PENGU’s funding rate is -0.0005%.

Funding rate is a periodic fee exchanged between long and short traders in perpetual futures markets to keep prices aligned with the spot market. 

PENGU’s persistently negative funding rate indicates that short positions dominate, signaling a potential pullback as traders brace for a downturn.

This, combined with gradually building buyers’ fatigue, points to a possible PENGU price correction over the next few days.

PENGU Eyes Breakout but Risk of Correction Grows

At press time, PENGU trades at $0.0160, just below the resistance at $0.0170. If profit-taking begins, the meme coin could witness downward pressure toward $0.0137. 

Should this support floor fail to hold, PENGU’s price could slip further to $0.0128.

Conversely, if demand strengthens, PENGU could break above the $0.0170 resistance. A successful breakout may open the door to $0.0175, a level last seen before its downtrend began on May 14.