- Participants in smart money on the market have halved their positions in Pengu, possibly due to weak basic principles.
- Spot and derivative traders have followed the example. However, the possibility of a rally remains strong.
Pudgy Penguins’s [PENGU] Momentum has continued to weaken after the 135% rally in the past month. The 24-hour movement, a price increase of 1.94%, clearly indicates a lack of sufficient market sentiment.
As analysts try to determine whether the rally will be maintained or whether Pengu will fall further, the Amusry analysis shows that Pengu is showing two -way price movement on the graph.
Smart money reduces exposure to Pengu
Smart money investors are known for strategic trade, buying assets with a discount and selling on a premium.
Currently, these investors have sold 33% of their Pengu tokens, which suggests that they are leaving with a profit.
Further analysis shows that this decline began after a smart money wallet, the ‘Sigil Fund’ label, sold 52 million Pengu tokens. This event preceded the price of Pengu.
Source: Nansen
These types of movements often inspire a lack of trust among investors, which has been observed in various top -sporting feuds.
The Spotmarkt has reflected this growing Bearish sentiment.
At the time of writing, the exchange of Netflows have become positive for the first time since 27 April.
This shift indicates that sellers move their assets from private wallet to exchanges, with about $ 318,000 sold in Pengu so far.
When smart money and spot traders both start selling at the same time, this usually indicates that a large price decrease can be underway if the market sentiment turns against it active.
Financing percentage confirms the Bearish sentiment
Financing Rate (FR) – a measure of the costs of keeping futures positions – confirms the Bearish sentiment of the market.
The total FR has become negative in the last 24 hours, at -0.0038%.
Source: Coinglass
This means that short traders currently have the most restless futures contracts and pay a premium to maintain their positions.
As long as these sellers continue to pay, it suggests that the market remains in their favor and that the price can remain lower trends.
On OKX, the sales volume has remained dominant with a lecture of 0.93, while Binance traders show a similar position with a ratio of 0.9613.
A bullish route map ahead
Despite the Bearish Momentum, the fall in Pengu seems to be actively positioning it in the coming days for a significant price rally, according to technical analysis.
The decrease started after the price had tested the resistance level of the bullish triangle pattern in which Pengu is currently trading.
This bullish triangular structure usually forms the stage for upward movement, whereby prices are expected to rise at least to the peak of the pattern.
Source: TradingView
To start the Pengu meeting, the price must fall to the support level of $ 0.010559, which forms the basis of the pattern.
If Pengu re -testing this zone, this can cause an increase of 42.44% of that level.
Smart Money and Spot traders currently seem to coordinate the sale to push the price lower. This strategy ensures a discount on accumulation before a potential large upward movement.