Pengu, a native token tied to top NFT project Pudgy Penguins, has risen 6% in the last 24 hours amid a marked increase in trading volume.
As investors’ interest rises, on-chain data flashes signs of potential continuity with the upward momentum of pen.
Pengu outperforms another leg
Two important on-chain metrics suggest that the rally may not be over. First, Pengu’s liquidation heatmap valuation revealed a significant liquidity cluster just above current prices around $0.045.
A clearing heatmap is used to identify price levels where clusters in leveraged locations are likely to be cleared. These maps highlight areas of high liquidity, often color coded to indicate intensity, with bright zones (yellow) representing greater liquidation potential.
When liquidity clusters form the current market price of an asset on top, they often act as magnets and draw the price on top. These zones are generally covered by traders who aim to trigger stop loss or forced clearing. This is because they know it can generate fuel from buy-side pressure and short-term bullish momentum.
For Pengu, liquidity clusters around $0.045 could act as price magnets. As traders push the market towards that zone, they could potentially draw the meme coin value higher.
Additionally, Pengu’s long/short ratios have skyrocketed to a monthly high of 1.06, highlighting bullish convictions among derivative traders.
The long/short ratio measures the percentage of open long positions (betting when prices go up) and opens short positions (betting when prices go down) across the futures market.
A ratio above 1 indicates that you are gaining longer positions than shorter traders. In the case of Pengu, it shows that market participants are increasing their advantages.
Pengu’s near tug of war could determine the next big move
At the time of writing, Penge trades for $0.0379 and is stable above the $0.0369 on the support floor. If you continue to buy momentum, Meme Coin could gather towards the $0.044 area near where the liquidity cluster is located.
However, once bear pressure rises again, the collapse below the $0.0369 support could open the door to curb deeper retraces towards the $0.0291 zone.
A post about why Pengu’s liquidation heatmap is first appearing on Beincrypto.
