Technical Analysis of $PENGU : Bulls in Control After Breaking EMA50 and Surge in Open Interest (OI)

$PENGU has confirmed a short-term trend change towards a bullish sentiment after convincingly surpassing the 50-period Exponential Moving Average (EMA50). This key movement was supported by a notable increase in trading volume, indicating strong participation and conviction from buyers. The rebound originated from a crucial support level at $0.0037, marking the end of a corrective phase.

The break of the EMA50 now paves the way to the next horizontal resistance, located at $0.0183. Surpassing this level would become an even stronger bullish signal, paving the way for potential additional gains.

Open Interest in Futures Soars

The derivatives market of PENGU also exhibits strong optimism. Open interest in futures surged an impressive 42.12% in the last 24 hours, reaching $114.38 million. This spike represents the highest open interest recorded since January 30, indicating a significant influx of new capital and the opening of new positions.

What Does the Increase in Open Interest Mean? An increase in open interest, especially in a context of rising prices, generally suggests that new participants are entering the market and opening long positions (buying). This reflects growing confidence in the continuation of the bullish trend, as more traders bet on a future price increase.

Additionally, liquidations of #PENGU in the last 24 hours amount to $2.99 million, with a significant majority of 64.39% corresponding to short positions. This suggests that a considerable portion of traders who were betting on a price decline (short positions) were forced to close their positions due to the bullish movement, which often further exacerbates the price increase.