Pudgy Penguins [PENGU] made a major step towards fulfilling its goal to expand its reach beyond the internet.
Following its successful TCG drop in June, Pudgy Penguins has now launched PENGU plushies for retail purchase. The new plushie line marks the NFT project’s biggest push yet into retail. Even more importantly, with this move, Pudgy Penguins extends its reach to millions more users.
In fact, Pudgy Penguins noted this milestone, adding that,
Pengu has been introduced to millions of new people in retail
An expanded user base is good news for the network and the native token, PENGU, as it increases use cases for the token. Furthermore, more traders will discover the token via QR codes on plushies, thus potentially driving demand for PENGU.
How did Pudgy Penguins’ market react?
With the news, the PENGU price made a slight move higher, hiking to $0.0062 before slightly pulling back to $0.0061 at press time. These slight gains were mostly driven by spot buyers who rushed to accumulate.
According to CoinGlass data, the exchange outflows outpaced inflows significantly over the past day. As a result, the Spot Netflow remained negative.
At press time, the Spot Netflow was -$139k, indicating that more PENGU flowed out of exchanges. Often, reduced supply on exchanges has preceded better price performances.
Bears still dominate perps, risking another pullback
While buyers rushed into the spot on the good news, traders on the derivatives aggressively cashed out on these gains.
For starters, on the perpetual side, the Perps Sell Volume rose to 984.2 million, compared to 874.9 million in Buy Volume.
As a result, the perps recorded a negative delta of -109.3 million, a clear sign of aggressive selling. The same market behavior was observed on the futures side.
According to CoinGlass data, Futures Outflow rose to $23.4 million while Inflow fell to $22.4 million. For that reason, Futures Netflow dropped 228% to -$975k.
A negative Futures Netflow suggests that more traders closed their positions, reflecting increased bearishness.
What’s next for the memecoin?
Despite PENGU’s extended reach, the market structure remains strongly bearish. At press time, the Relative Strength Index remained within the bearish zone at 45.
This implies sellers are still controlling the market. The Stochastic Momentum Index also confirmed this view, as it remains negative.
Although SMI has been on an upward trajectory, the indicator holds deeply within the bearish zone. Combined, these two indicate that the momentum leans to the downside and is likely to remain so.
Thus, if the slight demand driven by the news fades, exacerbated by derivatives pressure, PENGU will drop to $0.0058. If the plushies help boost demand, however, with the extended base, PENGU could hold $0.006 and target $0.0068.
Final Summary
- Pudgy Penguins announced the launch of PENGU plushies on all Target shelves across the United States.
- PENGU market remains structurally bearish, driven by intense selling pressure on thderivativeses market.
Be the first to comment