Pudgy Penguins (PENGU) Price Surge: $0.02 Breakout Imminent as Shorts Get Squeezed

PENGU traders are bracing for volatility as the meme coin flirts with a critical $0.02 resistance level. The setup? A textbook short squeeze in the making—because nothing fuels crypto rallies like liquidated hedge funds and FOMO.

Technical breakout or trap? Chartists point to increasing buy pressure while skeptics whisper about 'pump-and-dump' patterns. Either way, the penguins are dancing—and someone's about to get frostbite.

Fun fact: This rally coincides with yet another 'institutional adoption' press release. How convenient for the whales looking to offload bags.

PENGU has been on a strong run, even while the rest of the altcoin market is struggling. Now, it’s starting to grab attention from the wider meme coin community. After hitting a $1 billion market cap and holding steady while others fall, Pudgy Penguins is quickly becoming one of the top tokens to watch this cycle.

Pudgy Penguins Joins the Billion-Dollar Club

Pudgy Penguins (PENGU) just crossed a major milestone, breaking into the $1 billion market cap range. Trading at just over $0.0158, the token has surged nearly 8.48% in the last 24 hours and more than 65% over the past week.

Pudgy Penguins’ current price is $0.1581, up 8.48% in the last 24 hours. Source: Brave New Coin

This MOVE puts a spotlight on how far PENGU has come, not just as a meme, but as a growing ecosystem, which is now starting to get attention from multiple fronts. Hitting the billion-dollar mark remains a major milestone for PENGU.

Pudgy Penguins hits a $1B market cap after a 65% weekly surge, signaling rising momentum in the meme coin space. Source: Richie via X

PENGU Holds Its Ground Despite Weaker Market

While the broader altcoin market shed $11 billion in value, PENGU didn’t flinch. According to NumberOnePengu, the token actually gained market share, a move that stands out in the middle of a heavy red day. Even with Bitcoin and other majors pulling back, PENGU stayed green, showing relative strength in both price action and volume.

PENGU gains market share as altcoins drop $11B. Source: NumberOnePengu via X

Technically, the PENGU/OTHERS chart reveals some key takeaways. While overall altcoin dominance was trending down, PENGU’s price was carving out higher lows, riding along key support zones with decent volume buildup. That kind of divergence between market cap decline and token strength is rare, and usually a sign of accumulation before a breakout. If the rest of the market bounces, PENGU could be one of the first to move.

PENGU Short Squeeze on the Table

Following other recent signs of strength, famous crypto analyst Johnny believes PENGU could be gearing up for a classic short squeeze. PENGU funding rates have flipped heavily negative, suggesting increasing short positions despite a nice-looking structure.

PENGU faces heavy short interest amid strong price action, setting the stage for a potential short squeeze rally. Source: Johnny via X

After holding up during a broader altcoin pullback, Pudgy Penguins is getting heavily shorted despite its strength. When the price is trending higher and shorts keep piling in, it creates a pressure build-up. If momentum flips even slightly in favor of the bulls, it can trigger a slingshot effect, forcing shorts to cover quickly and driving the price even higher. In this kind of environment, bearish overconfidence can backfire fast.

Technical Outlook: Eyes on the 0.382 Fib and 0.020 Target

With Pudgy Penguins price holding its recent gains, price action is now approaching a key technical juncture. alekstraderx points to the $0.236 zone on the 4H chart as a short-term support level that could set the stage for a move toward the 0.382 Fibonacci level NEAR $0.020. That area also lines up with a visible imbalance, making it a logical target if buyers stay in control.

PENGU eyes key support at $0.236, with a clear path to the 0.382 Fibonacci level near $0.020 if buying pressure holds. Source: alekstraderx via X

Looking at the chart structure, the move off the lows is clean with rising volume, and there’s minimal overhead resistance until that $0.02 to $0.022 zone. The lack of major sell walls combined with strong price memory around $0.236 gives bulls a window to push. It’s another piece in the broader narrative where technical setups are beginning to match the momentum.

PENGU Is the Meme Coin to Watch

With market sentiment shifting and meme coins once again taking the spotlight, PENGU is quietly setting itself apart. It’s not just the $1B market cap or the sharp price surge; rather, it’s how PENGU Pudgy Penguins price has behaved while the rest of the altcoin space struggled.

Holding up during market-wide selloffs, showing technical strength, and now drawing serious attention from the meme coin community. Add to that the short squeeze setup, bullish chart formations, and renewed community energy, and PENGU starts to resemble the early stages of other breakout meme rallies. If this structure holds and “risk-on” sentiment returns, PENGU could be lining up to lead from the front.

Final Thoughts

PENGU has done more than just ride the meme coin wave; it’s starting to lead it. With strong price action, a growing community, and signs of a possible short squeeze, Pudgy Penguins is quickly turning the sentiment in its favor.

On the technical side, the setup looks promising. The token is forming higher lows with rising volume, and the 23.6% zone is acting as strong support. If buyers hold this level, a move toward the 38.2% Fibonacci near $0.020 looks likely. There’s little resistance in that range, and with short interest building up, a breakout could trigger a squeeze that sends PENGU even higher.