Pudgy Penguins (PENGU) saw its price surge by 28% today, driven by factors including Binance's removal of the high-risk 'Seed Tag', a general market recovery for NFTs, and a technical breakout attracting buyers. However, signs of overheating have also raised market concerns about short-term pullbacks.
Binance removes the Seed Tag, opening the door for institutional funds.
On July 21, Binance officially removed the 'Seed Tag' label from PENGU. This label was primarily used to indicate tokens with higher risks, so its removal symbolizes that PENGU is regarded as a more mature asset, increasing its appeal to institutional investors. Following this announcement, PENGU began to rise gradually.
The NFT market is exploding, and PENGU is rising with the tide.
In addition to Binance's positive news, the overall recovery of the NFT market also provides strong support for PENGU. The floor price of Pudgy Penguins' NFTs surged by 15% in a single day, reaching 16.75 ETH (approximately $63,500), showing that market confidence in the project is rapidly warming up.
Among them, there is no shortage of large investors participating, such as a CryptoPunks acquisition worth as much as $5.87 million, which further ignited market enthusiasm. Coupled with Ethereum breaking through $3,800, it also became a catalyst. The overall NFT trading volume surged by 344% in a single day, reaching $42.7 million, which in turn pushed up tokens linked to NFT projects, such as PENGU.
(NFT reserve company? Market trading volume triples and hits a new high, large investors sweep up CryptoPunks worth millions)
Technical breakthrough but rising risks, high probability of a short-term pullback.
In terms of technical charts, PENGU successfully broke through a symmetrical triangle pattern and exceeded the estimated target price of $0.0379, reaching as high as $0.0398, triggering a wave of momentum buying.
However, signs of overheating are gradually emerging. According to TradingView data, the daily RSI (Relative Strength Index) for PENGU reached 81, entering a zone of extreme overbought conditions. Technical analysts warn that if a pullback occurs, it may test the support range of $0.031 to $0.032 in the short term.
The altcoin season has arrived, with funds shifting from Bitcoin to smaller coins.
In the macro market, Bitcoin's dominance fell from 63% to 58%, releasing a significant amount of capital towards other crypto assets. According to the Altcoin Season Index data, the altcoin season index soared by 235% in a month, indicating a market preference shift toward projects that combine topics and community enthusiasm.
As a meme coin highly associated with NFTs, PENGU, combined with high community discussion activity, naturally becomes one of the targets pursued by funds.
Market outlook: How long can the NFT craze last?
The recent surge of PENGU is the result of multiple positive factors converging: favorable exchange policies, a rebound in the NFT market, and technical breakthroughs. However, the risk of technical indicators entering an overbought zone should not be overlooked.
The key to the future will depend on whether the NFT market can maintain its heat, and whether Bitcoin can reclaim its market dominance. Once funds concentrate again on mainstream coins, high Beta assets like PENGU may face greater volatility.
This article: PENGU surges 28%! Binance unlocks risk labels + NFT craze assists. First appeared on Chain News ABMedia.
