Pudgy Penguins [PENGU] surges 68% as bullish signals emerge

Pudgy Penguins [PENGU] has experienced a significant surge, rallying 68% over the past week. This impressive performance has flipped the SuperTrend indicator to a bullish signal for the first time in months, following an extended accumulation phase. The token is now trading around $0.0162, showing strong upward momentum and approaching a critical resistance level at $0.018.

The spot market for PENGU has seen a dramatic rise in buy-side activity, as indicated by the Spot Volume Bubble Map turning "heating." This surge in volume reflects genuine demand and renewed market participation, rather than speculative derivatives-driven action. Such spikes often precede sustained rallies, especially when paired with a strong SuperTrend flip. This uptick in spot interest could form a solid base for continued price strength, potentially leading to a breakout above the $0.018 resistance level.

Funding Rates across exchanges remain mixed, with Binance’s Aggregated Rate turning slightly positive at 0.01%, while the OI-Weighted Rate remained firmly negative at -0.0329%. This suggests that many traders still hold short positions despite the recent rally. If bullish momentum continues, it could trigger a wave of short liquidations, further amplifying price movement. The lingering short pressure might work against itself, fueling the upside as traders rush to cover positions, setting the stage for high volatility.

Technical indicators for PENGU show no signs of weakness. The MACD line has pushed further above its signal line, indicating rising bullish momentum. Meanwhile, the Parabolic SAR dots remain below the current price structure, confirming the strength of the trend. Key support levels rest at $0.0151 and $0.0114, while $0.018 remains the critical resistance to beat. With trend-following tools flashing green, bulls appear to be firmly in control, at least for now. The longer PENGU holds its structure, the more confidence traders may gain.

The Binance liquidation heatmap shows heavy clusters of short liquidations stacked around $0.0173 to $0.018. With PENGU trading close to this zone, any push above $0.018 could trigger cascading liquidations, accelerating the uptrend toward $0.028. These trapped leveraged shorts act as fuel for volatility, making this price zone not only technical resistance but a tipping point for a broader market reaction. A clean breakout could unleash aggressive momentum, drawing even more participants into the move.

The odds are tilting in favor of a breakout above $0.018, supported by rising spot demand, bullish technical signals, and increasing short pressure. If momentum continues and liquidation clusters are triggered, PENGU could surge quickly toward the $0.028 level. However, sustained buying pressure is essential—another rejection at $0.018 could stall the rally. The next few trading sessions will be critical in determining whether bulls can flip $0.018 into a solid launchpad or if the rally fizzles just before liftoff.