PENGU, a new Solana-based meme coin, has recently made waves with its explosive growth leaving its mark on the crypto space. Token ATH! Deep into what’s causing this bull run. Among other things, they’re investigating the effects of the Upbit listing and a recent spike in Pudgy Penguins NFT sales on the broader market. Could this be a sustainable pump, or are we witnessing the birth of an entirely new meme coin flash in the pan? Let's break it down.

The Upbit Effect and NFT Connection

PENGU’s price has gone up in the past week largely due to its listing on Upbit. This top South Korean cryptocurrency exchange is a critical driving force behind the surge. For one, listings on the major exchanges increase trading volume and liquidity. They may open the asset to a wider array of potential investors. What comes with that added accessibility usually comes with upward price pressure and PENGU seems to be no different.

To add an interesting twist to fire, the Pudgy Penguins NFT collection, apparently unconnected, has experienced significant movement. Notably, Pudgy Penguins #6873 sold for an eye-popping 200 WETH (over $360,238). While the overall Pudgy Penguins collection initially saw declines in transactions, buyers, and sellers, it later experienced a rebound in transactions and sellers, although buyer numbers remained relatively stable.

At the time of this writing, the Pudgy Penguin collection has debuted on July 22, 2021. In fact, it sold out in 19 minutes flat at an initial mint price of 0.3 ETH! As of this morning, 8,888 NFTs have been minted. These NFTs are currently owned by 5,142 unique owners, making up the current total market cap of $235,332,090. Today, PENGU and Pudgy Penguins are both active participants in the fast-paced world of digital assets. During NFT Mania 2021, bullish momentum on them indirectly propped up the entire meme coin sector too, particularly when you put the penguins in focus!

Technical Analysis: Charting PENGU's Course

From the perspective of technical analysis, the price action of PENGU has been a mixed bag of bullish and bearish signals. Though the recent surge is a clear sign of bullish momentum, a few indicators point to some potential for caution. According to technical indicators, PENGU can be considered overbought, so it is possible that a retracement or even a correction may happen. Here's a look at key support and resistance levels to watch:

Key Levels to Watch

  • Support Levels:
    • $0.0339 (0.5 Fibonacci retracement)
    • $0.0376 (1.272 Fibonacci extension)
    • $0.0388
  • Resistance Levels:
    • $0.043
    • $0.047433 and $0.056114 (predicted price range)
    • $0.0503 (2.618 Fibonacci extension)
    • $0.0538 (3.618 Fibonacci extension)

Today, PENGU is trading at around BTC0.061333. That’s a 0.7% decrease from only one hour ago and a 7.3% decrease from 24 hours ago. Given the recent price movement, this has been at times a radical shift. These changes indicate that in the past week, the daily highest exchange rate of PENGU to BTC was BTC0.000000136793 and the lowest BTC0.000000108652. The current rate is around 1 PENGU = 0.000000133251 BTC.

Considering these levels and the overbought status, traders need to expect some pullbacks and consolidation periods. A break above the resistance levels could signal further upside, while a drop below the support levels could indicate a deeper correction.

Solana Memes, Bitcoin's Shadow, and Sustainability

Indeed, PENGU’s strong performance is inextricably linked to the overall boom of the Solana meme coin market. It’s largely dependent on how Bitcoin is doing in general. While there's no direct correlation mentioned between Bitcoin's performance and PENGU's recent rally, Bitcoin's overall market sentiment inevitably influences the altcoin market, including meme coins. A bullish Bitcoin also makes for a more risk-on ecosystem, stimulating investment in speculative BTC-pegged assets like PENGU.

It’s important to not lose sight of the risks that come with meme coins. PENGU’s price volatility has been off the charts. After experiencing a large monthly decline in Q1 2023, it bounced back sharply in April. This volatility emphasizes the potential for large financial returns as well as losses. As you might expect, PENGU’s price is highly responsive to market sentiment. The recent increase in social volume and attention from the crypto community further proves this influence. Whale activity—in which a small number of large investors directly or indirectly acquire significant amounts of PENGU tokens—can result in price manipulation and greater volatility.

PENGU is a meme coin, meaning its value could be driven less by fundamental factors such as revenue or profitability. This lack of focus could result in unsustainable momentum long-term. As always, investors should proceed with caution and do their research before investing in PENGU or any other meme coin.