Fuzzy Penguin (PENGU) has set a six-month milestone for meme coins by recording a new all-time high (ATH) of $0.046.
However, despite the record high, the altcoin is facing the challenge of gradually losing investors. This could lead to a decline in the PENGU price.
Fuzzy Penguin Demand
The increase in demand for PENGU was reflected in the derivatives market. Open interest, including both long and short contracts, surged 54% within 48 hours, jumping from $426 million to $657 million. This indicates that most market participants are showing bullish sentiment, with the funding rate primarily positive, suggesting a strong preference for long contracts.
The increase in open interest reflects investors' optimism despite market volatility. The surge in contract volume indicates that PENGU's price increase is based on spot market trading and significant leverage.
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Over the past few days, PENGU's holder changes have been mixed, with new investors entering the market and some existing holders exiting. This mixed sentiment shows a lack of clear consensus among investors. Some are confident in PENGU's potential, while others remain cautious about the sustainability of the recent surge.
The absence of clear investor patterns indicates that skepticism is still widespread. Nevertheless, the entry of new holders suggests a strong belief in PENGU's future, driven by the altcoin's price momentum and broader market conditions. However, simultaneous investor exits could pose a fundamental challenge to maintaining the upward trend.
PENGU, Potential for Continued Price Increase
PENGU is currently trading at $0.044, having reached a new ATH of $0.046 earlier today. The altcoin has shown a strong short-term surge, rising nearly 20% in the past 24 hours. These price movements have pushed PENGU to its six-month high, highlighting the recent bullish sentiment towards meme coins.
To maintain its upward momentum, PENGU must secure solid investor support. If the altcoin can maintain this buying pressure, it is likely to break through the $0.046 ATH and target a new high above $0.052. The key to continued growth is market confidence.
Conversely, if increasing uncertainty and investor exits transform into a larger trend, PENGU's price could experience a sharp decline. If it falls below the $0.040 support level, it could drop to $0.029, potentially completely reversing the recent bullish trend and invalidating the optimistic outlook.
