- The PENGU token has dropped nearly 50% after a large sell-off by whales, but technical analysis suggests a potential recovery if support holds.
- The token’s strong community and ongoing exchange liquidity may help stabilize its price in the coming days.
The PENGU token, tied to the popular Pudgy Penguins NFT collection, has experienced a sharp drop in value following a significant sell-off by large investors. Recent data shows that the Sigil Fund, a major holder of the token, moved a staggering 52 million PENGU tokens to exchanges, leading to a nearly 50% decline in price from its recent highs. As a result, the token is now trading at levels not seen in weeks, sparking concerns about its short-term future.
However, technical analysts at ETHNews are not overly pessimistic about PENGU’s long-term prospects. Charts indicate that the token is forming a bullish triangle pattern, which could signal an upward price movement in the near future. The $0.010559 price point is viewed as a crucial support level. If the token can hold above this threshold, analysts project a potential rise to $0.01596, marking a 42% increase from current prices.
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The recent sell-off is likely driven by profit-taking rather than a complete abandonment of the token. PENGU gained significant attention after its listing on Binance and the successful airdrop, which often prompts early investors to cash out on their gains. Crypto analyst @ChartPengu referred to the situation as a “reset,” noting that the next phase of growth could come from retail traders, particularly if the token’s utility remains strong.
The Pudgy Penguins brand itself remains a powerful influence, with a dedicated and active community supporting the token. This community engagement, alongside strong exchange liquidity, could cushion any further declines, making it more likely for the token to regain momentum.
Still, the immediate outlook hinges on whether retail buyers step in to absorb the selling pressure around the $0.010559 support level. If the token fails to hold at this floor, it could signal a shift in market sentiment. For now, all eyes are on the next 48 hours, which will be critical in determining whether PENGU can weather the storm and recover from the whale-induced sell-off.
