- Smart money just sold 33% of their PENGU holdings, triggering a wave of bearish sentiment.
- But technical patterns hint at a possible 42% rally if prices hit key support.
In a surprising twist, Pudgy Penguins’ [PENGU] token is showing signs of a potential 42% rally—even as smart money investors offload a significant portion of their holdings. Over the past few days, top wallets have shed 33% of their PENGU positions, signaling a possible exit at profit after the token’s 135% surge in the last month.
The sharp reduction in holdings started with the ‘Sigil Fund’ wallet, which dumped 52 million tokens. The move sent ripples through the market, leading to a noticeable drop in PENGU’s price. This trend has spread, with exchange netflows turning positive for the first time since April 27—indicating traders are transferring their holdings to exchanges, typically a bearish signal.
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Further confirming this sentiment is the Futures Funding Rate, now sitting at -0.0038%, showing that short positions are dominant and traders are paying to maintain them. Volume ratios on major exchanges like OKX and Binance echo this sentiment, with selling pressure clearly outweighing buying.
Yet, despite the prevailing negativity, technical indicators suggest a bullish twist could be in the works.
PENGU is currently forming a bullish triangle pattern, with the resistance line recently tested. If the price retraces to the $0.010559 support level—the base of the triangle—technical analysis suggests a possible 42.44% rebound from there. Historically, such patterns often precede strong upward movements, and traders could be aiming to push prices down to this critical zone for discounted re-entry.
This coordinated selling by both smart money and spot traders may not be a sign of long-term bearishness, but rather a strategic play to accumulate at lower prices. With market structure still intact and momentum patterns suggesting a rebound, traders are eyeing a potential rally that could defy the current trend.
PENGU may be down, but it’s not out—and if technical signals hold, a sharp comeback could be just around the corner.
