Key Takeaways
PENGU’s price may be nearing a reversal point as traders anticipate a surge that could take the altcoin to $0.10. While its ongoing correction has been accelerated by sellers’ dominance, the deployer’s position hinted at whales’ return.
Pudgy Penguins’s (PENGU) price has been dipping over the last one and a half months, alongside those of other top memecoins in the market. At the time of writing, PENGU was down 2% in the last 24 hours, following losses of 12% on the monthly charts.
Despite a sustained decline in price, analysts are viewing the correction as a precedent to a potentially massive rally. In fact, conversations about ’50x for PENGU’ have gathered steam on YouTube too.
What about realistic targets though?
Can PENGU hit its $0.10 target?
PENGU’s daily chart, as analyzed by Ali Martinez, indicated that the memecoin may be approaching its buy zone of $0.025. According to him, PENGU might be in a deep pullback phase, just like back in the second quarter of the year.
PENGU wasn’t the only memecoin affected adversely though. Other big movers like Fartcoin (FARTCOIN) and BONK depreciated too. This implied that they could lead the sector’s recovery once the crypto market sees a sentiment change.
Source: Ali Charts/X
In case the $0.025-level holds as anticipated by Ali, it could be the start of a rally towards $0.10. This would represent more than 4x returns for traders’ positions at the price level.
In the meantime, if the bulls fail to defend the level, bears could continue dominating the market. The result would be a revisit of $0.018 – A previous resistance turned support level.
Faster losses incoming?
At the time of writing, PENGU seemed to be holding on to the $0.29-level. However, sellers were still in control. The Spot Taker CVD was dominated by sales, with the metric rising in mid-July, according to CryptoQuant’s data.
Such a huge sale could accelerate the decline to $0.025. Despite the sell pressure being high, it was less pronounced at press time, as opposed to back in late July and early August.
Source: CryptoQuant
This analysis suggested that selling may be on the decline as PENGU nears $0.025.
According to Coinglass, the max pain levels for shorts were at $0.0297, while they were at $0.0286 for the longs.
A look at PENGU’s technicals
Finally, PENGU’s deployer activity implied that something could be brewing for the memecoin community. At the time of writing, deployers held about 11.34% of the total supply. Naturally, this induced panic due to uneven distribution.
In PENGU’s case, there might be a reason for that. Whales needed packed liquidity pools to enter their $1.80 billion orders before it launched on Abstract Chain. This was a hint that big players have been preparing to drive the price up.
Source: AIXBT Agent/X
Meanwhile, one of the Abstract chain developers noted that the PENGU ETF announcement could come on 12 October. This could stimulate a Q4 rally for PENGU, just like analysts like Martinez are predicting.
