The PENGU token is soaring on a combination of bullish factors
Pudgy Penguins (PENGU) has risen by more than 27% over the last day, reaching a three-month high. The recent rally comes after PENGU managed to outperform other assets in the second quarter, fueled by increased demand in South Korean markets.
Pudgy Penguins (PENGU) has been the best performer even on a day when the entire crypto market turned green. The nearly vertical daily rise followed a gradual ascent throughout the second quarter as PENGU recovered from its lows.
PENGU reached a three-month high, with a vertical rise over the last day. | Source: Coingecko
PENGU has risen by 27.2% over the last 24 hours, returning to $0.019, its highest price in three months. The asset started the second quarter closer to $0.004, achieving over 400% growth.
The short-term strength of PENGU has also surprised traders, resulting in about $2.8 million in short liquidations over the past hours. The rally also raises hopes that PENGU will return as a leading meme asset and community-based token.
The recent rally follows the addition of PENGU to one of the upcoming ETFs, currently under approval. PENGU was chosen as one of the few meme tokens to form the basis of an ETF. The latest rally coincided with a statement from the U.S. Securities and Exchange Commission recognizing the submission from Canary Capital for a PENGU ETF.
The success of the token has not helped the underlying NFT collection, which has maintained a relatively low floor price of 9.38 ETH. The Pudgy Penguins community is still relatively active, adding to the excitement for the token and establishing bullish expectations of a rise to $1.
PENGU supported by KRW trading
Since June, PENGU has seen its volumes increase against the South Korean won. The fiat currency is the second-largest source of liquidity for PENGU, creating a trading anomaly.
PENGU has managed to leverage the growing adoption of crypto in Korea, as Upbit is relatively selective in adding new assets. As a result, over 32% of PENGU's volumes are paired against the KRW.
PENGU has increased its activity against the Korean won to over 32% of its volumes. | Source: Cryptocompare
Over the past month, KRW volumes for PENGU have increased from a low base, growing by more than 50 times. The volumes come from PENGU's activity on Upbit, where the token is the sixth most active asset. The token maintains a similar ranking in the top 10 on Bithumb.
The recent daily price rally has shown that the frenzy for PENGU on South Korean exchanges is still relatively low. The token is still far from
The PENGU rally follows a compression of short positions
The PENGU rally had already started to climb after June 28, when the financing rate became negative. After a long descent, PENGU apparently attracted short sellers, with open interest rising from $32 million to over $160 million in a few weeks.
PENGU has also experienced extreme changes in long and short positions. However, the token has suffered from negative financing since June 28, signaling a prevalence of short sellers. Over the last two weeks, PENGU has experienced maximum negative financing days, causing accelerated short position compression.
The recent price rally combines several factors, giving the price a daily spike. PENGU could also increase its activity after being added to the Hyperliquid spot market. Currently, only five whales have set up derivative positions for PENGU, three of which hold short positions and are currently recording significant unrealized losses.
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