Decoding Ethereum’s $4,400 test – Are THESE divergences a rally signal or a sell trap?
- PENGU rallied 20% in the past 24 hours as of press time, ahead of Abstract chain mainnet launch.
- The token’s DEX trading volume also rose after a sharp decline for the last nine days.
Pudgy Penguins [PENGU] rallied more than 20% in the past 24 hours, marking by a significant uptrend on the hourly timeframe.
The memecoin moved from $0.021945 to a peak of around $0.026309, ahead of the anticipated Abstract chain mainnet launch.
This bullish trend was supported by a spike in buying interest as MACD volume bars depicted in that period.
The ADX indicator, at 23.55 at press time, suggested a moderate strength in PENGU trend, supporting the notion of a solid upward move rather than a weak, volatile spike.
The MACD showed a bullish crossover earlier in the period, aligning with the start of the price increase, validating the momentum.
However, the MACD indicated slight bearish momentum, with the signal line above the MACD line and a negative histogram at -0.000321.
This suggested that while the trend has been upward, there may be potential for a downturn.
Source: Trading View
Looking forward, the recent price rally suggested bullish sentiment, but a retracement remained possible. Prices often pull back sharply after strong gains, as traders take profits.
The MACD and ADX could help detect signs of weakening momentum or shifts in trend direction.
How social reach influenced PENGU’s DEX volume
The NFT, Pudgy Penguins, that now has a memecoin on Solana, is making significant strides in consumer crypto through robust social attention.
With widespread visibility on platforms like Instagram, Giphy and X, PENGU commands substantial social reach.
PENGU’s products are now featured in top American retail stores and have gained national media attention, including an interview on NYSE TV.
As a key part of the Igloo ecosystem, PENGU is set to boost the upcoming Abstract chain mainnet launch. It could act as an essential bridge, increasing visibility and integration within this broad on-chain community.
This Abstract chain talk led to a spike in volume of transfers and value suggesting increased movement of tokens, possibly PENGU, in anticipation of the event.
The DEX volume peaked with 113,345 trades worth $177.2 million, indicating a resurgence in trading activity after a nine-day decline.
PENGU’s transfers peaked in early January with over 350,000K, while the total transfer value reached its highest at $700 million.
Source: Solscan
Read Pudgy Penguins’ [PENGU] Price Prediction 2025–2026
Looking ahead, activity may keep rising as the mainnet launch nears, but volatility is a potential risk.
Traders should remain cautious; post-launch activity might decline if it fails to meet expectations, potentially driving token prices lower.
