Pudgy Penguins (PENGU) Gear Up for a Significant Upward Move as Whale Deposits $9.5M Worth of Tokens

The whale's activity, improving market sentiment, and technical recovery indicate that PENGU is gearing up for a significant upward move.

A whale has been making waves by depositing $9.5 million worth of 400.1 million Pudgy Penguins [PENGU] tokens into wallets over the past 24 hours. This follows the whale withdrawing $15.87 million in PENGU from Binance.

In total, the whale bought 581.96 million PENGU tokens and sold 71.96 million for $1.93 million. Currently, the whale has 110 million PENGU tokens, valued at $2.62 million, distributed across two wallets. At press time, PENGU was trading at $0.02435, showing a 1.92% gain in the last 24 hours.

These developments are bound to raise questions on whether this signals an accumulation phase for PENGU.

PENGU chart suggests potential breakout

PENGU has rebounded well from its critical support at $0.0233, maintaining a steady recovery. The daily chart suggests the next major resistance lies at $0.0362. It could test this level if buying momentum strengthens.

Moreover, the price trajectory shows a potential breakout toward the $0.05 mark if this trend continues. Whale activity aligns with this rebound, suggesting confidence from larger investors.

The upcoming sessions could define whether PENGU capitalizes on this bounce or faces renewed challenges.

The Relative Strength Index (RSI) on the 4-hour timeframe currently sits at 42.7, signaling neutrality. This indicates neither overbought nor oversold conditions, leaving room for upward movement.

Additionally, the Bollinger Bands (BB) are tightening, hinting at reduced volatility and a potential breakout soon. The price sits near the middle of the bands, reinforcing the possibility of further consolidation.

PENGU social volume surprisingly low

Despite this whale activity, PENGU’s social dominance and volume are notably low. According to the latest data, social dominance stands at just 0.11%, with only 36 social mentions in the last analysis window.

However, this subdued social engagement does not necessarily reflect market sentiment.

It may indicate that large investors are acting strategically, independent of retail hype. Therefore, while social metrics are lackluster, the technical, and market sentiment suggest a different story.

Market sentiment improves with rising open interest

Open interest has surged by 7.44%, totaling $160.41 million, which indicates growing engagement from traders and investors. This rise reflects a heightened interest in PENGU, likely triggered by the whale activity and technical rebound.

Additionally, increasing Open Interest often signals upcoming volatility, which could favor bulls if buying continues. Therefore, the overall sentiment is shifting toward optimism, despite the muted social metrics.