TLDR
- PENGU price dropped 8% in 24 hours to $0.030, wiping out monthly gains
- Exchange holdings jumped 5.74% while smart money wallets cut exposure by 12.83%
- Technical analysis shows death cross formation on 4-hour chart pointing to further downside
- Key support at $0.028-$0.030 zone under pressure with 53% drop possible to $0.014
- Market cap fell from $2.8 billion to $1.88 billion over past month
Pudgy Penguins price traded near $0.030 at press time, down more than 8% over the last 24 hours. The drop wiped out nearly all monthly gains for the token.
The token still shows a 113% return over the past three months. Fresh sell-side signals have raised questions about future price direction.
Data from Nansen shows exchange holdings for PENGU jumped 5.74% this week to 16.07 billion tokens. This means roughly 873 million tokens entered centralized exchanges.
The movement typically signals incoming sell pressure. Smart money wallets cut exposure by 12.83%, now down to just 136.51 million tokens.
Whale holdings dropped by 0.43% during the same period. Public figure-linked wallets also sold off, with balances falling 4.1%.
Only the top 100 addresses showed a 2.01% increase in holdings. They now hold 74.65 billion tokens, which may point to internal redistribution rather than net accumulation.
High-conviction players are reducing their exposure while exchange supply swells. The balance shift suggests selling pressure continues to build.
Technical Analysis Points to Further Decline
The 4-hour chart shows the 50 EMA approaching a death cross below the 200 EMA. This setup often leads to further downside movement.
Earlier this week, the 20 EMA crossed under the 200 EMA. This triggered a 15% PENGU price drop from $0.033 to $0.028.
Traders use EMA crossovers to track medium to long-term trend shifts. When shorter-term EMAs move below longer ones, sellers typically control the market.
The potential 50-200 EMA crossover would confirm the bearish trend. Historical behavior suggests another leg down may follow.
Support Levels Face Critical Test
PENGU price clings to support at the $0.028-$0.030 zone based on Fibonacci retracement levels. A break below $0.028 opens room for a drop toward $0.027.
If that level fails to hold, the next visible support sits near $0.014. This would mark a 53% potential drop from current levels.
Such a move would bring the token back to pre-rally prices. The bearish crossover and rising exchange reserves leave little room for short-term optimism.
The project’s market capitalization dropped from $2.8 billion to $1.88 billion over the past month. This reflects broader market trends affecting the sector.
Some analysts suggest September often sees bearish movements in crypto markets. October has historically been a more bullish period for digital assets.
Pudgy Penguins Price Prediction
Crypto analyst Nebraskangooner noted that PENGU shows no change in its head-and-shoulders breakdown pattern. The technical formation remains intact on charts.
Lennaert Snyder observed that PENGU continues to hold key $0.03 support with repeated bounces. He noted that while a liquidity dip below $0.03 remains possible, the focus stays on maintaining this level.
Technical indicators show mixed signals at present. Some traders have found short-term opportunities using trend-based strategies.
However, no long-term bullish signals are confirmed currently. The token faces a critical period as it tests key support levels.
For the bearish outlook to change, PENGU price would need to reclaim $0.033. This would require the death crossover to fail and buying pace to increase.
The token maintains strong visibility and daily promotion despite current price pressure. Community interest continues as the project navigates market fluctuations.
