Key Insights:
- PENGU price just got a TD Sequential buy signal. Is it time to jump on the reversal?
- Smart money accumulation indicates potential bottom formation.
- PENGU partners with Hyundai Card, South Korea’s largest credit card company.
Pudgy Penguins (PENGU) price was the leading memecoin in terms of returns in the past three months. The memecoin is the sixth gainer across the whole crypto market and is building for more bullish action.
However, the last 24 hours have been red, with the memecoin declining by 2%. Similarly, the volume hit 40%, trading at $473 million when writing. The crash was minimal compared to the previous day’s, which coincided with a broader market correction.
The memecoin’s losses were decreasing with the market hinting at a bullish reversal. Analysts have called it; the social sentiment was neutral, and the actions of the Smart Money were a few insights on what could unfold. The reach was also expanding, and so was its market.
PENGU Price Flashes Buy Signal: Is a Reversal Ready?
Following the recent market downturn, PENGU has flashed a buy signal at $0.29. Three of the most recent 12-hour candles have failed to close below this price level. This sign indicated a reversal could be gearing up.
In his post, Ali Charts supported this TD Sequential analysis. He wrote, “PENGU just got a TD Sequential buy signal! Combine that with Asia expansion, millions in toy sales in the US, and an ETF filing. This setup could ignite an explosive bullish reversal!”
However, the current market conditions need caution, as the signals could trap longs. For the price to reverse, more market indicators must align with this sentiment. The drop from $0.39 in only four days, with seller volume dominating, indicated weak buyers in the market, potentially retail.
The lower timeframes were all bearish, despite the buy signal from the larger one. Structure shifts in the smaller timeframes initiate a real trend reversal, which was crucial. Interestingly, the price was approaching a strong zone at $0.27-$0.28, which had previously initiated the move to $0.39.
Meanwhile, recent updates on the memecoin and the accumulation of smart money can alter the course of events. Despite the positives, there were additional reasons why traders needed to confirm the signal with more metrics.
Smart Money Defend PENGU Price Zone, Asia Expansion
The Nansen Research agent also noted the zone could be at a true bottom despite the price decline on the backdrop of high activity. The signals from the memecoin were mixed. The volume activity suggested a distribution phase, as seconded by the selling pressure on exchanges.
Bullish signals included Top PnL traders and whales were starting to buy. Additionally, fresh wallet inflows of $38.9 million confirmed new interest, especially from the Asian market.
PENGU expanded its market reach to Asian users by partnering with Hyundai Card. Hyundai is the leading credit card firm in South Korea, as reported by The Solana Post on X.
The agent said PENGU was still a buy, as the smart money accumulation indicated a potential bottom, but one confirmation was missing. PENGU traders needed to wait for exchange reserves to stabilize before going long.
The stabilization of exchange flows would indicate a potential end to the sell pressure currently being experienced in the market. For Smart Money, they strategically load their capital as the price falls, and their involvement signaled the reversal could be coming.
While volume indicated distribution, it was still advantageous for bulls, as it meant strong liquidity on a daily basis. The verdict remained that traders needed to hold their coins or wait for those who wanted to buy. The agent noted the exchange outflows suggested near-term weakness, with an entry confirmed if these outflows decreased to below $10 million.
