- PENGU surged 24.6% alongside Bitcoin, recovering recent losses and nearing its $0.0141 resistance.
- Strong volume and bullish indicators suggest momentum, but traders should watch for a potential rejection at key levels.
Pudgy Penguins [PENGU], a memecoin that has captured the attention of crypto traders, surged by 24.6% on May 8th following a sharp rally in Bitcoin [BTC], which climbed to $103.1k. The positive sentiment sweeping the market lifted several altcoins, and PENGU was no exception, recapturing its losses from the past ten days.
PENGU’s push higher was fueled by strong market participation. The one-day chart revealed elevated trading volumes, a bullish market structure, and a decisive move that brought the token close to its April 28th highs. The Chaikin Money Flow (CMF) indicator crossed above +0.05, signaling intense buying pressure, while the Relative Strength Index (RSI) moved beyond 70, reinforcing the bullish narrative.
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However, a note of caution is warranted. If the daily candle closes above $0.0127 and RSI maintains its current trajectory, a bearish divergence could form. This pattern typically suggests waning momentum and hints at a potential rejection around the $0.0141 resistance — though not a guaranteed downturn.
Data from Coinalyze added further insight. Open Interest climbed alongside the price, indicating rising speculative demand. Still, funding rates remained mixed, suggesting that traders aren’t overly euphoric. This might reflect an undercurrent of caution, possibly due to some market participants attempting to short the rally and capitalize on a potential pullback.
Despite this, the overall outlook remains bullish. The $0.0141 mark stands as a key resistance zone — if bulls manage to push past it convincingly, it could flip into support and open the doors for further gains. That said, with Bitcoin’s volatility casting a long shadow over altcoins, traders should keep a close eye on broader market movements.
In the short term, all eyes are on whether PENGU can maintain its momentum — or if resistance at $0.0141 will trigger another cooldown.
