PENGU Price Prediction: The daily volume has surged significantly, on-chain data shows a quick Rebound to break through 0.044 USD.

PENGU is the native Token of the top-tier NFT project Pudgy Penguins. In the past 24 hours, its volume has surged significantly but has fallen nearly 6%. Today (1) during the Asian session, the price of PENGU is reported at 0.03391 USD, following the Rebound of Bitcoin and the broader market. However, with increased investor interest, on-chain data shows that the price of PENGU is set to rebound soon.

PENGU is ready for the next bull market

Two important on-chain indicators suggest that this round of gains may not yet be over. Firstly, an assessment of the Pengu liquidation chart shows a significant liquidity accumulation at the current price slightly above $0.045.

(Source: Coinglass)

The liquidation chart is used to identify the price levels at which leveraged positions may be liquidated. These charts highlight areas of high liquidity, usually color-coded to indicate the strength of liquidity, with brighter areas (yellow) indicating a higher likelihood of liquidation.

When liquidity clusters form above the current market price of an asset, they often attract price increases like a magnet. Traders typically target these areas to trigger stop-loss orders or forced liquidations, as they know this will create strong buying pressure and stimulate short-term price momentum.

For Pengu, a liquidity cluster of about $0.045 could become a price magnet, potentially driving up its price as traders push the market towards that area.

In addition, the long/short ratio of PENGU rose to a monthly high of 1.06, indicating strong bullish sentiment among derivative traders.

(Source: Coinglass)

The long/short ratio measures the proportion of open long positions (betting on price increases) relative to open short positions (betting on price decreases) in the futures market.

When the ratio exceeds 1, it means that there are more traders holding long positions than those holding short positions. In the case of Pengu, this indicates that market participants are increasingly betting that the price will continue to rise.

Support levels may determine PENGU's next move

As of the time of writing this article, the trading price of PENGU is $0.033, maintaining above the support level of $0.029. If buying momentum continues to strengthen, the token may break through the $0.044 area, approaching the liquidity concentration zone.

However, if selling pressure re-emerges, a break below the support level of 0.029 USD could open the door for further retracement to the 0.019 USD area.

(Source: Trading View)