PENGU’s 13% surge – Will this be the catalyst the memecoin sector needs?

PENGU’s price has climbed by more than 13% in the last 24 hours alone. In fact, at the time of writing, the memecoin was ranked among the best-performing on the day, second only to PEPE.

The timing here is interesting. Especially since the aforementioned hike came on the back of the wider crypto market resurging after a red Q4 in 2025.

All about PENGU’s latest breakout

Pudgy Penguins (PENGU) was in a tight range since mid-December, bouncing between $0.008547 and $0.009646.

The sideways consolidation hinted at a potential bottom for the memecoin as the price followed with a breakout. However, for the breakout to be sustained, bulls need to defend the $0.009646-level against a potential breakdown.

The breakout on the charts was robust, as indicated by the Momentum indicator. In fact, its reading flipped from negative to positive too.

Additionally, the On Balance Volume (OBV) seemed to be on the same trajectory at press time. The OBV had a value of over $36 billion – A sign that capital was being pumped into the memecoin.

The memecoin’s price action revealed that $0.01 was the next target, with short orders getting obliterated more than long. For context, approximately $265k in short positions were wiped out – More than 10 times the amount for long positions.

Again, the data from CoinGlass revealed that confirmed exchange volume played a part in this memecoin’s resurgence. Binance, Bybit, and OKX led in Futures trading, as well as in Spot.

The breakout was not only influenced by the structural outlook and volume, but also by the on-chain behavior of holders.

A look into its sale distribution

According to data from Dune Analytics, the sales distribution of Pudgy Penguins showed holders massively slowing down their selling spree.

The number of sales declined to a low of 878 from a ceiling of 39,160. This suggested that participants were more inclined towards accumulation than distribution, thus closing out the capital outflows.

Now, it’s worth underlining that the sentiment has been the same for the broader crypto sector lately. However, it’s the memecoins that have reacted better than all altcoin sectors.

Hence, the question – Will this resurgence be sustained?

Is the memecoin sector finally on its way back?

As per MacroCRG, the sector spiked by more than 11% as a whole. The top-capped memes did not perform better than the two aforementioned in this analysis.

With Bitcoin (BTC) still weak, the move could be invalidated quickly. However, if the resurgence holds, memecoins could significantly increase in value, as they tend to record the most dramatic price fluctuations among all altcoin sectors during rallies and crashes.

Altogether, the reaction of PENGU and PEPE as the year begins could be a precursor of what could happen as Q1 unfolds. This, because the cryptocurrency market was bearish in Q4 of last year – Typically a bullish period. This approach could allow the markets to register a rally in the days ahead.

Still, that does not rule out the potential for downside if bears re-take control. Especially since BTC is still down on the charts.

Final Thoughts

• PENGU has been leading the memecoin sector’s resurgence, driven by reduced selling, volume.
• PENGU bulls face a critical test at $0.009646 on the 4-hour timeframe.