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Pudgy Penguins (PENGU) has produced a 30-day gain of 205% as a handful of Solana meme coins seem to have captured the public’s interest and have pulled a strong short squeeze.
Before the rally, PENGU was the worst-performing meme coin in this category’s top 10 with yearly losses of almost 90%.
As the market started to recover, a significant number of short positions were progressively blown up as the rally progressed.
The result: Pudgy is the best-performing meme coin of the top 10, but is still the worst loser on a year-to-date basis.
In the past 24 hours, the token has retreated by 11.1% and trading volumes have increased by nearly 25% and currently account for more than half of PENGU’s circulating supply.
Similarly, other Solana meme coins like Bonk (BONK) and dogwifhat (WIF) have dropped but much less sharply than PENGU as sellers may now try to play the same hand on bulls and could put significant pressure on the price to pull a long squeeze.
PENGU Shows Signs of Recovering, But It May Struggle to Get Back to $0.01700
PENGU’s hourly chart shows that the token faced significant selling pressure once it got to $0.01700. In two occasions, the meme coin experienced a strong retreat off this level and a double top has now formed as a result.
The price action shows that PENGU broke its bullish structure with a big red candle after the American session ended yesterday. Just hours later, the 21-period exponential moving average (EMA) crossed below the 50-period EMA and confirmed a bearish short-term outlook for the token.
The price has now broken below the 200-period EMA but touched a key support. This is an area where buyers have shown up to scoop up PENGU two times already. The result in both instances was a rally toward the $0.01700 resistance.
Can PENGU rise again to those heights? It will depend on how much liquidity is left at this support area and how committed buyers are to keep pushing PENGU higher.
A break of structure has already occurred on the opposite side and the price has jumped above the 21-period EMA already. If it keeps surging and rises above the 50-period EMA, this would confirm a bullish short-term outlook for PENGU.
As for how high the price may go this time, it will take significant liquidity and momentum to push PENGU back to the $0.01700, but it may be the last retest that the market needs to determine if it will finally break it to push this meme coin to at least $0.02000.
As Solana meme coins keep attracting investors and speculators, the network needs the strongest architecture to be able to deal with these higher transaction volumes.
Solaxy (SOLX) is one of the hottest crypto presales of the year as it solves Solana’s congestion issues through a layer-two scaling solution.
Solaxy (SOLX) Enters Last Days of Its Presale With $36M Raised – Don’t Miss Out
Solaxy (SOLX) alleviates the congestion that the Solana mainnet typically experiences when volumes get out of hand.
It accomplishes this through a side chain that bundles transactions offline before sending them to the layer one.
The developing team has made some encouraging progress in testing and deploying the L2. Recently, they launched a block explorer for the Solaxy testnet so investors can check in real time how the solution is performing.
They have collaborated with top blockchain companies like Sovereign Labs and Hyperlane to expedite the development of Solaxy.
$SOLX, the L2’s utility token, will experience significant demand once wallets and exchanges start to adopt Solaxy. In addition, its staking rewards are quite attractive as well at 112%.
To buy $SOLX at its discounted presale price, head to the Solaxy website and connect your wallet. You can either swap SOL or USDT for this token or use a bank card to make your investment.
