Key Takeaways
A $70 million liquidity drain slashed PENGU’s gains, but Funding Rates stayed positive. Conflicting signals leave traders questioning whether bearish pressure is fading or not.
Liquidity outflow in the market led Pudgy Penguins [PENGU] to lose more than 9% in 24 hours, cutting its monthly performance to 23% as of press time.
Still, analysis showed signs of growing bullish activity, which could overturn the bearish outflow and position PENGU for a new high.
Liquidity scarcity forces PENGU lower
The drop in PENGU’s price was closely tied to liquidity leaving the market. In just one day, the outflow reached roughly $70 million, while Open Interest on CoinGlass fell to $332.66 million.
This decline indicated that both long and short traders are pulling back from the market. Long traders closed more positions than shorts, with liquidations on the long side notably higher in the past day.
At the same time, the Funding Rate dropped sharply. To be detailed, the OI-Weighted Funding Rate fell from 0.0265% to 0.0063% — confirming that many long traders are no longer active.
Despite the outflow, the OI-Weighted Funding Rate remained in positive territory, signaling that bullish interest is still present in the market.
Buyers stayed active despite pressure
CoinGlass Spot Exchange Netflow showed investors were still actively buying.
In the past 72 hours, investors purchased over $14.5 million worth of PENGU and moved asset
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Author: Olayiwola Dolapo
