TLDR
- Pudgy Penguins (PENGU) gained 60% following a market crash that pushed the token down to $0.005 before recovering to $0.026.
- Whale wallets increased holdings by 3.2% while 8.78% of exchange supply was withdrawn, showing strong accumulation during the dip.
- Smart Money inflows spiked 6.3 times above average with trading volume hitting $1.07 billion in 24 hours.
- Open Interest climbed back to $160.27 million after dropping from $342 million, with long liquidations totaling $52 million.
- Technical analysis shows critical support at $0.023, with potential targets at $0.040 and $0.13 if the level holds through Q4.
Pudgy Penguins (PENGU) posted a 60% gain to start the week after recovering from one of the memecoin sector’s sharpest declines. The token dropped to $0.005 during Friday’s market crash before bouncing back to trade near $0.026.

The recovery follows a volatile period that saw most altcoins break down during the flash crash event. PENGU now trades at a quarterly loss of 7% for Q4, a stark contrast to Q2 and Q3 gains of 171.7% and 88.5% respectively.
Price action on the three-hour chart shows PENGU testing lows below the $0.028 to $0.040 support zone. Bollinger Bands expanded during the crash then contracted as volatility cooled. The token moved back above the mid-band, signaling early recovery momentum.
Technical indicators turned positive with the Chaikin Money Flow reading at 0.01, confirming capital inflow. The MACD crossed into bullish territory following the bounce from crash lows.
Whale Activity Drives Recovery
On-chain data reveals strong accumulation patterns behind the price recovery. Smart Money inflows jumped 6.3 times above typical levels as large holders bought the dip.

Exchange data shows 8.78% of PENGU supply was withdrawn from trading platforms in the past 24 hours. Net outflows indicate tokens moving into cold storage rather than being sold on exchanges.
Top wallet holders increased positions by 3.2% during the downturn. These large holders maintained confidence through the crash and added to their holdings at lower prices.
Trading volume reached $1.07 billion over 24 hours. Open Interest recovered to $160.27 million after falling from a peak of $342 million down to $134 million during the selloff.
Long liquidations totaled $52 million during the crash. Historical data shows major liquidation events often precede strong rallies, similar to the August 5 crash that sparked the late 2024 recovery.
Critical Support Level at $0.023
The weekly chart displays a downward-sloping channel formation that began after June’s rally. PENGU tested the lower boundary at $0.023 during Friday’s crash but held above this key support level.
Analyst Ali Martinez identified $0.023 as the line that determines the next major move. A hold above this level keeps the door open for targets at $0.040 and $0.046 in the near term.
Martinez projects a potential breakout target of $0.13 based on the height of the previous rally. This represents a 465% move from current levels if the technical pattern plays out.
A breakdown below $0.023 would invalidate the bullish structure. The next support level sits at $0.017 if selling pressure returns and breaks the channel.
PENGU showed relative strength compared to most altcoins during the flash crash. While many tokens broke their technical structures, PENGU maintained its channel pattern and bounced cleanly from support.
The token needs to reclaim $0.030 to confirm the recovery trend. A move above this level would establish momentum toward retesting $0.040 as the immediate target.
Current price action trades within the established channel boundaries. The coming days will show whether buyers can push through resistance or if another support test occurs at $0.023.