- Hike in NFT sales over the past week plus whale accumulation hinted at bullishness
- Liquidation heatmap and the FVG together gave swing traders a long setup
Pudgy Penguins [PENGU] saw a sizeable rally over the past five days. At the time of writing, the native token of the Pudgy Penguins NFT project was up 48.6% from the low of $0.0095, set on 25 June.
These explosive gains followed the filing of the Canary PENGU ETF. Positive exchange netflows, negative weighted sentiment, and negative funding rates highlighted bearish expectations in the market. Could the PENGU market be poised for a bearish reversal?
All signs show PENGU was a “buy”
CryptoSlam data showed that the past 7 days have been productive in terms of NFT sales.
The volume of NFT sales was $1.498 million – A 47% weekly increase. Similarly, the sales transactions measured 65, which was a 41% weekly hike. Whale buys of 200 million PENGU, worth $2.4 million, in the past 24 hours also fueled bullish belief.
Source: PENGU/USDT on TradingView
Technical analysis revealed that following the whale buys might be a good idea. The price action was bullish once again after the local high at $0.01 and $0.011 (white) were breached in two days. This breakout occurred on high volume, following the bullish expectations in the market after the ETF news.
The swift move higher left behind a fair value gap (white box). FVGs are a sort of gap seen in price action, with the assumption that the price might retest this imbalance before continuing its trend. Hence, swing traders could use a retest of this demand zone to go long.
The OBV made a new high, underlining heavy buying volume in recent days. The CMF’s reading of +0.1 signaled sizeable capital inflows into the PENGU token market. The MFI crossed over above 50 and was heading towards 80 at press time – Another sign of strong demand and bullish momentum.
Source: Coinglass
The 2-week liquidation heatmap showed that the $0.0122-$0.013 region was littered with long liquidations. The magnetic zone also lined up well with the fair value gap highlighted earlier. Hence, traders can expect a bullish reaction from this support.
Overhead, the $0.0156 region could oppose PENGU’s progress, potentially leading to a range formation. Given the strong demand recently and the strong momentum on the daily chart, a range formation did not appear highly likely at the time of writing.
