Key Takeaways
PENGU rallied 16% and neared $0.0436 resistance, but rising Exchange Inflows, a bearish Long/Short Ratio, and increased short exposure raise correction risks as traders anticipate a potential rejection from this level.
Amid the ongoing market recovery, Pudgy Penguins [PENGU], a Solana [SOL]-based memecoin, posted a 16% rally that pushed it to $0.0426, at press time, just shy of a key resistance level.
But on-chain data now signals possible turbulence ahead.
PENGU hits resistance again
The current uptrend has brought PENGU close to $0.0436, a level where the token previously faced an 18% rejection. If the rally stalls again, a short-term pullback could follow.
At the time of writing the Trading Volume jumped 15% in the last 24 hours, reflecting heightened retail and investor activity. Still, the test of resistance is critical—either bulls breach the ceiling, or bears reclaim control.
On the 4-hour chart, PENGU has broken past a descending trendline, flipping the structure bullish. It now trades above the 21-period Exponential Moving Average, signaling upward bias.
Source: TradingView
Chaikin Money Flow stood at +0.10, indicating continued capital inflow and healthy demand.
However, price remained locked below the $0.0436 resistance band, and any failure to break above could trigger profit-taking.
If bulls succeed in clearing this hurdle, the next leg up could retest the previous high and potentially chart a new ATH.
Bearish on-chain metrics cloud the rally
Despite bullish signals, on-chain metrics paint a more cautious picture.
CoinGlass data showed $2.03 million Net Exchange Inflow of PENGU in the last 24 hours, as of press time.
Source: CoinGlass
This significant inflow into exchanges suggests a potential sell-off, indicating selling pressure and further downside momentum, which PENGU is currently experiencing.
At the same time, the Long/Short Ratio dipped to 0.95, with Short Positions (51.06%) now outnumbering Long Positions (48.94%).
This shows increased bearish speculation, with traders expecting a rejection near resistance.
Source: CoinGlass
While the short-term trend remains bullish, rising Exchange Inflows and negative sentiment in the derivatives market hint that a correction could be next.
Unless buyers step in with strong volume and flip the $0.0436 zone, PENGU may revisit the lower support range around $0.038.
