Investor confidence in PENGU returns after partnership with Care Bears

PENGU price volatility has remained weak for many months; however, selling pressure is gradually easing, and sellers are starting to lose control. This Solana-based memecoin has been trading within a broad flag pattern since July, and the recent downward momentum has shown signs of exhaustion.

On the daily chart, PENGU has rebounded from the flag pattern’s support area around $0.009732, showing a clear improvement in trading momentum.

Source: TradingViewAs of now, PENGU has increased by 8% on the day, reaching $0.01138. This recovery reflects a positive shift in market sentiment, opening up expectations for renewed short-term activity.

Partnership Announcement Sparks New Market Momentum

The Pudgy Penguins team (PENGU) has just announced a strategic partnership with Care Bears. The launch of a special collectible edition on December 12 has quickly sparked a wave of optimism within the investor community.

Immediately following this news, PENGU saw a strong influx of capital.

Specifically, net capital inflow in the derivatives market increased by $1.01 million within 24 hours, while net capital inflow in the spot market rose by $470,390 in the same period. This development indicates an accumulation trend among major investors (whales), which is often a precursor to breakouts after price tests key support levels.

Net inflows in shorter time frames remain volatile, reflecting short-term profit-taking after the rebound. However, 12-hour and 24-hour inflows indicate that buying pressure is still dominant.

Source: CoinGlassLarge buy orders on the spot market continue to increase, reinforcing the confidence of major investors that the current price is still attractive for long-term goals.

Buyer Dominance Strengthens Bullish Outlook

Notably, capital inflows are not the only factor driving optimistic sentiment.

According to data from CryptoQuant, the Futures Taker CVD indicator has shifted to a clear buying advantage since early December. Buyer dominance has continuously increased over the past six sessions, reinforcing the outlook for extended growth.

This trend shows that traders are willing to increase their positions and support liquidity around the current price range.

Source: CryptoQuantCombined with strong capital inflows and the supporting flag pattern, the current backdrop opens up the potential for further gains if buying power is maintained.

Is PENGU on the Brink of a Breakout?

PENGU has maintained the flag pattern’s support zone, while new catalysts are bringing the token closer to a crucial turning point. The partnership with Care Bears could continue to boost market sentiment, but buyers need to generate a clear breakout after a prolonged accumulation period.

If buying power is strong enough to push the price above the flag pattern’s upper band, the next notable resistance level will be around $0.034009.

Ong Giao