Pudgy Penguins (PENGU) reveals a bounce back signal: The start of a new breakout?

The market structure of Pudgy Penguins (PENGU) is gradually sending positive recovery signals, as the buy signal from the TD Sequential indicator is confirmed — coinciding with the continuous trend of token withdrawals from the exchange and the return of accumulation “whales”.

The consensus between technical signals and on-chain data is reinforcing the belief that market momentum has shifted towards the bulls. Currently, the price of PENGU is accumulating in a bullish pattern, setting the stage for the potential breakout to higher Fibonacci resistance levels in the near future.

The uptrend may explode towards Fibonacci levels

On the weekly frame, the “cup-and-handle” model (cup-and-handle) has gradually completed, indicating that a recovery momentum is forming after a prolonged correction phase. The accumulation phase in the “handle” part seems to be nearing its end, placing PENGU in a state ready to break through the Fibonacci level 1.0 at 0.0218 USD.

If this scenario is confirmed, the Fibonacci extension levels at 1.618 (0.0305 USD) and 2.618 (0.0447 USD) will become the next potential price targets.

Source: TradingViewNotably, the liquidation heatmap( records a dense cluster of liquidations in the range of 0.023 – 0.0238 USD, which could trigger a short squeeze when liquidity is freed up. This move, if it occurs, will further bolster confidence in the bullish trend of PENGU in both the spot and derivatives markets.

Investors withdraw 863,000 USD from the exchange

The cash flow in the spot market recorded a net outflow of 863,000 USD on October 21, indicating that investors continue to transfer tokens out of the exchange. This trend not only helps to reduce selling pressure but also reflects the increasingly strong confidence of investors in the upward trend.

![])https://img-cdn.gateio.im/webp-social/moments-b9f8cded5e062c4422edc705a01ea306.webp(Source: CoinGlassNotably, the scale of capital withdrawals is gradually increasing along with confirmation signals from the TD Sequential indicator, further reinforcing the view that an Accumulation process is forming. Historical data shows that similar strong withdrawals often precede the next bullish cycles.

However, to maintain the current recovery momentum, the market needs a stable influx of buying capital from both retail and institutional investors, ensuring that the growth momentum is not interrupted.

The big whale returns to Pudgy Penguins

According to data from CryptoQuant, the volume of large buy orders from whales is increasing, reflecting a strong return of institutional money flow and investors holding significant amounts of assets.

Notably, the green buy order clusters on the chart indicate a familiar accumulation pattern — similar to previous stages that preceded breakout growth cycles.

![])https://img-cdn.gateio.im/webp-social/moments-be6b0e3b7ea4caf5d72e1c6c622aa072.webp(Source: CryptoQuantThe consensus between on-chain Accumulation signals and technical momentum is forming a positive market structure, opening up prospects for a new bullish phase.

However, to solidify this trend, a stable accumulation process still needs to be maintained, especially when Pengu is approaching the important resistance zone at 0.023 USD.

PENGU is ready for the decisive breakthrough?

The consensus between bullish signals from both technical analysis and on-chain data is reinforcing short-term recovery expectations for Pengu.

If the price can decisively break the resistance level of 0.023 USD, the upward momentum may be triggered, bringing Pengu closer to the target range of 0.03 USD — even higher — as the inflow of money from whales continues and the supply on the exchange shrinks.

However, for a strong upward cycle to truly form, the market still needs an additional phase of stable Accumulation and clear confirmation signals for this breakout.

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