• PENGU gained by 9.6% in 24 hours, backed by a long/short ratio of 54.01% favoring bulls
• If spot selling continues, PENGU may struggle to maintain momentum despite bullish leverage

In the last 24 hours,  Pudgy Penguins [PENGU] recorded a decent price rally, gaining by 9.6% within this period.

Analysis also indicated that buying activity in the derivatives market has been high – A sign that these traders may be anticipating the memecoin’s rally. And yet, spot traders continue to offload the asset, expecting a downtrend.

What are derivatives traders up to?

At the time of writing, derivative traders appeared to be increasingly confident. In fact, the buying volume of traders in the derivatives market has been the highest across multiple timeframes.

In the last four hours, the Long/Short Ratio stood at 52.67% in longs versus 47.33% in shorts.

This skew echoed across higher timeframes, reflecting sustained buying pressure in the derivatives market.

Zooming out, the 24-hour Long/Short ratio also revealed a buyer-heavy bias – 54.01% long versus 45.99% short – reinforcing expectations of an extended rally.

On top of that, the Open Interest-weighted Funding Rate flipped positive, adding fuel to the bullish thesis.

In case of it being positive, it means that a majority of open positions in the market are long trades, with the same anticipating a price rally.