Pudgy Penguins [PENGU] surges 12.95% to $0.01447 on bullish momentum

Pudgy Penguins [PENGU] has shown a significant rebound, rallying 12.95% to $0.01447 after bouncing off the lower boundary of its ascending channel. This pattern has historically led to notable rallies, and the recent price action has reignited bullish sentiment among traders. The upward move has drawn attention to higher levels, with traders speculating about the potential for further gains.

The recent spike in derivatives activity highlights growing confidence in PENGU’s potential for further upside. Volume has surged, while Open Interest has also risen, reflecting a sharp increase in trading participation. This renewed interest in PENGU derivatives points to heightened speculation, which may help sustain price momentum if bullish sentiment remains intact through the next trading sessions.

Despite the bullish momentum, short-term caution is necessary as the Stochastic RSI has entered the overbought zone. This reading typically signals a potential cooldown, though not necessarily a trend reversal. On the upside, Fibonacci retracement levels between $0.01330 and $0.01400 now act as a strong support cluster. As long as the price stays above this range, bulls are likely to defend it. A clean bounce here could trigger a fresh leg toward the $0.016–$0.017 resistance zone.

Short traders have started to suffer as PENGU’s price pushes higher. Liquidation data shows that a significant amount of short positions were wiped out, compared to a smaller amount in longs. This imbalance reveals that bearish bets are being rapidly closed out as the price continues to rally. If PENGU’s price climbs into these zones, additional short positions may get liquidated, potentially triggering a cascade effect. This liquidation pressure could act as fuel for the next leg up, targeting $0.01694 and beyond.

With a price reclaiming structure, trading activity rising, and short sellers under pressure, PENGU is well-positioned for more upside. The move above key retracement levels, combined with increasing Open Interest and dense liquidation zones, creates ideal conditions for a sustained rally. If bulls can flip the $0.0155 resistance into support, the door opens for a run toward $0.017 and potentially $0.020. While overbought signals suggest a brief pause could occur, the broader trend remains strong.