As of the time of writing, the price of Pudgy Penguins [PENGU] is in a strong upward trend, with momentum also being quite robust. The rapid rebound on June 28 is likely a byproduct of bullish sentiment following ETF speculation.
The official token of the Pudgy Penguins NFT series seems to be challenging the resistance zone of $0.015, which rejected this price back in May.
The market structure is bullish, and the local high at $0.0125 has also been broken. A fair value gap (white) has subsequently appeared, which should provide a good buying opportunity if a pullback occurs. However, a pullback may not come quickly. The momentum oscillators continue to rise, and a break above the zero line indicates that buyers have been pushing this momentum.
The volume indicators are also strongly bullish. The CMF is well above +0.05, with a reading as high as +0.21 indicating a significant influx of funds into PENGU. The A/D indicator also reflects an increase in recent demand.
The trend of high daily trading volume began last Friday and seems to be continuing. High trading volume has driven up the Pudgy Penguins token, but this rise has also come with greater volatility. The long wicks above and below the bodies on the candlestick chart illustrate this.
Volatility suggests that the price movements of PENGU may be determined by liquidity clusters on lower time frames.
Clues from the PENGU liquidation heatmap
It is normal for an asset to consolidate after experiencing a strong rebound like we saw at the end of June. PENGU has exhibited this to some extent, as despite its momentum slowing, it continues to form higher lows. Therefore, a range pattern has not yet formed.
On Tuesday, the price rebounded significantly to $0.162, taking away a large amount of liquidity at $0.0157. The price then immediately dropped to $0.0138, pulling liquidity in the opposite direction. This indicates that the market may be on the verge of volatility, and traders should be extra cautious or remain on the sidelines.
The range of $0.012-$0.013 is a magnetic zone that could trigger a bullish trend. This range also seems to lie within the previously highlighted fair value gap and has established prior local highs. In the coming days, if the price tests this level again and subsequently rises, it could be a noteworthy scenario to watch.
