According to CoinMarketCap data, PENGU has fallen by 11% in the past 24 hours, becoming the biggest loser among the top 100 cryptocurrencies. This rapid decline typically suggests that prices may continue to weaken, but market sentiment also indicates that bulls could enter at any time, allowing for a short-term rebound opportunity.

Why the drop? The primary reason is the significant pressure in the derivatives market.

The open interest for PENGU (the amount of money being bet) evaporated by 19% in one day, equivalent to 15.4 million dollars leaving the market. The outflow of funds combined with the price drop usually indicates that the market is starting to turn more bearish.

At the same time, about 1 million dollars worth of long positions have been liquidated in recent days, indicating that many investors betting on price increases have been shaken out. The recent long-short liquidation ratio is also quite evident: for every 1.1 dollars of shorts that were liquidated, there were 9.9 dollars of longs that were liquidated, showing that the pressure on the longs is significantly greater.

However, the market is not entirely bearish. In fact, several bullish signals have emerged.

The most obvious is Binance. Binance is the exchange holding the most PENGU derivatives, with an open interest of up to 22.7 million dollars. Moreover, Binance's long-short ratio is at 1.6, indicating that buying power outweighs selling power, reflecting stronger bullish sentiment.

Additionally, the financing rate in the derivatives market has turned positive (0.0082%), suggesting that more people are willing to pay interest to go long, which is typically a bullish market signal.

There is also capital inflow in the spot market.

In the past 48 hours, approximately 2.26 million dollars have been used to buy PENGU. On December 10 alone, the net purchase was 1.76 million dollars. And as of today, about 500,000 dollars have been bought so far, with buying pressure continuing to increase.