PENGU Leads Altcoin Rally Alongside Bitcoin’s 6.2% Surge

PENGU Regains Ground After 10-Day Correction

PENGU has successfully recovered all the losses it incurred over the past ten days. As Bitcoin led the charge, PENGU bulls stepped up, capitalizing on the overall bullish environment as well as the overall increasing interest in speculative investments, namely meme coins.

Over the last two weeks, the meme token formed a bullish market structure, supported by steady increases in trading volume. This technical setup indicated growing confidence among market participants even before BTC’s recent breakout.

Source: AMBCrypto

The price rally on May 8th coincided with a notable surge in trading activity, signaling renewed interest from both retail and institutional investors who are looking to re-enter the market.

Previous Performance

Trading for PENGU on Coinbase began on February 13th, 2025. Spot trading for both the POPCAT-USD and PENGU-USD pairs was rolled out in stages, while perpetual futures trading for these tokens was also made available on Coinbase International Exchange and Coinbase Advanced from 09:30 AM UTC on that same day.

This listing followed the tokens’ inclusion in Coinbase’s roadmap, alongside Morpho (MORPHO), which was not confirmed at the time. The official listing has sparked a larger price rally, with POPCAT surging over 25%, while PENGU rose by 12%.

Following the listing on Coinbase, PENGU, which recently hit an all-time low, went up 18% from that point, though it was still down 7.8% for the week and 65% from the previous month.

This surge aligned with the “Coinbase Effect,” where tokens often see major price boosts post-listing.

PENGU Daily Chart Analysis

Several key technical indicators confirm the strength of PENGU’s current uptrend:

• The Chaikin Money Flow (CMF) crossed above the +0.05 level, a clear sign of increased buying pressure in the market.

• The Relative Strength Index (RSI) climbed above the 70 mark, placing it in overbought territory and confirming bullish momentum.

Despite the increase, however, it should be mentioned that this strong RSI reading brings a word of caution. If PENGU closes above the $0.0127 resistance level, it may trigger a bearish divergence, especially if momentum starts to fade.

More importantly, although this divergence would not guarantee a price drop, it could nevertheless signal a temporary rejection near the $0.0141 local high.

Derivatives & Funding Rates

Data from derivatives analytics platform Coinalyze reinforces the short-term bullish narrative:

• Open Interest has risen sharply alongside the price, indicating increased speculative positioning from traders.

• However, the Funding Rate has not stayed consistently positive, suggesting a balanced market rather than one leaning too far into euphoria.

Source: TradingView

This mix of optimism and caution could be a sign that some traders are trying to short the top, expecting a correction after such a rapid gain. It also reflects broader market sentiment from the previous week, when uncertainty loomed despite underlying strength.

Bullish With Caution Near Resistance

The outlook for Pudgy Penguins (PENGU) remains bullish in the short term, driven by strong fundamentals, technical signals, and Bitcoin’s macro momentum. However, several factors could introduce volatility:

• A bearish RSI divergence at higher levels could signal a cooling-off period.

• Fluctuations in Bitcoin’s price, particularly near psychological levels like $105k or $110k, could create ripple effects for altcoins like PENGU.

• Funding Rate behavior should be monitored, as consistent positive rates may indicate an overheated market.

A Pivotal Moment for PENGU

Pudgy Penguins has shown impressive resilience and upside potential during this latest rally. With its price action aligning closely with broader market trends, PENGU may be entering a critical phase that determines whether it can sustain its momentum or faces short-term resistance.

For now, traders and investors should watch the $0.0141 level closely, while keeping an eye on macro conditions and Bitcoin’s next move. If BTC continues to climb, PENGU could ride the wave toward new highs.