With the broader crypto market signaling recovery, Pudgy Penguins [PENGU] successfully held $0.01 support, rising to a local high of $0.012.
In fact, at press time, PENGU was trading at $0.01221, up 25.47% on daily charts. Over the same period, the memecoin’s trading volume surged 153.5% to $333 million, indicating growing on-chain activity.
But is this the start of a sustained recovery?
PENGU retail buyers stage a comeback
The recent price uptick was largely fueled by a resurgence in retail buying, as PENGU traders returned once the market cooled.
According to Coinalyze, the memecoin recorded 3.2 billion in Buy Volume versus 3.1 billion in Sell Volume over the past 24 hours.
Source: Coinalyze
As a result, the altcoin recorded a positive Buy Sell Delta for the first time in four days, reflecting increased spot accumulation.
Furthermore, exchange activity also echoed this shift in market power dynamics. According to CoinGlass, the memecoin’s Netflow declined significantly, turning negative after hiking the previous day.
Source: CoinGlass
At press time, Netflow was -$791k, down from $907k, indicating increased outflows from the exchange.
Typically, higher exchange outflows reduce the readily available supply, easing potential selling pressure while accelerating upward pressure.
Whales remain bearish despite recent gains
Despite recent weakness, PENGU has seen elevated whale activity over the past month.
Data from CryptoQuant’s Spot Average Order Size confirms this trend, showing consistently large whale trades throughout the period.
Source: CryptoQuant
Surprisingly, these whales have been increasingly active on the sell side. As such, with Pudgy Penguins recording significant gains, whales took the opportunity to cash out.
According to Nansen, PENGU’s top holders posted a negative balance change for two straight days.
On November 2nd and 3rd, they sold 572.9 million and 288.35 million tokens, while purchasing 560 million and 277 million, respectively.
Source: Nansen
As a result, the memecoin recorded a cumulative balance change of -22 million, reflecting higher selling activity from the group.
Are recent gains sustainable?
According to AMBCrypto, Pudgy Penguins bounced back, as demand for the memecoin, especially from retail investors, rebounded.
As a result, the memecoins’ Relative Strength Index (RSI) made a bullish crossover, rising from the oversold zone of 28 to 44, at the time of writing.
With RSI making a bullish move, although it has yet to flip 50, it suggests that buyers are slowly regaining control of the market.
Source: TradingView
Such market conditions position RSI for more gains on its price charts. Therefore, if the recently witnessed demand holds, PENGU will target the 50MA at $0.015.
However, if whales continue selling, the memecoin could see all recent gains erased as PENGU retraces, breaching $0.01 support and falling to $0.0095.
Final Thoughts
- Pudgy Penguin [PENGU] surged 25.47, hitting a local high of $0.0127, after defending $0.01 support.
- The memecoin rebounded as retail demand recovered; however, whale selling threatens these gains.
