Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify

by

As a seasoned analyst with over two decades of experience in the ever-evolving world of crypto, I have witnessed my fair share of bull and bear markets. The current plunge of the PENGU token, associated with the Pudgy Penguins NFT project, is reminiscent of the dot-com bubble burst in 1999, where overvalued stocks plummeted following a period of hype and speculation.

The PENGU token linked to the Pudgy Penguins NFT initiative has been on a steady slide, dropping by approximately 33% in the last day. This substantial drop is a continuation from the significant price decrease seen after its initial release, where the token lost more than half of its value.

The graph showing the token’s price history suggests persistent selling activity, potentially leading to additional decrease in its value.

Pengu Selloffs Result in Over 50% Decline

Following the airdrop on December 17th, PENGU’s price experienced a steep decline of approximately 57%, falling from its initial value of $0.068 to $0.043 due to increased selling pressure. According to BeInCrypto, this downward trend also affected the token’s market capitalization, which decreased substantially from $4.32 billion to $3.07 billion.

Over the last day, the downward trend for PENGU has grown more pronounced, causing it to drop an additional 33%, leaving it trading at just $0.030 at this moment. This decline has cemented PENGU’s status as the greatest market loser.

Looking at its performance over an hourly period shows that it has been consistently losing value, or selling off. For instance, PENGU’s Relative Strength Index (RSI), which measures its strength relative to other assets, is currently below the neutral line of 50 and is decreasing at 42.18.

The Relative Strength Index (RSI) tool assesses whether an asset’s market conditions are excessively bought or sold, with readings falling between 0 and 100. Readings higher than 70 signify the asset is overbought, meaning it could benefit from a correction, while figures below 30 indicate that the asset might be oversold, possibly preparing for a rise or rebound.

According to PENGU’s RSI readings of 42.18, it falls within the lower end of the neutral zone, implying a potential downward or weakening trend in momentum, though it hasn’t quite reached an oversold state yet. This suggests that there is more selling activity than buying activity among traders at present.

Additionally, the token’s negative Chaikin Money Flow (CMF) supports this pessimistic viewpoint. Currently, it stands at -0.23.

The Capital Movement Function (CMF) gauge assesses the balance of buying and selling activity by examining price movement in relation to trading volume over a defined timeframe. Similar to PENGU, when an asset’s CMF value is less than zero, it indicates that sellers are exerting more influence, which can signal distribution as traders tend to be unloading the asset rather than amassing it.

PENGU Price Prediction: Will It Hold Support or Slide to New Lows?

Currently, PENGU is floating slightly above $0.026, marking its lowest price point since the token was introduced. If its owners persistently sell their airdropped tokens, the price could drop down to this support level. If it can’t sustain this level, the price of PENGU might continue dropping to even lower prices.

But should the market’s overall attitude change from pessimistic to optimistic, the altcoin could potentially start a rally and reach $0.37, contradicting the previous bearish perspective.

Read More

2024-12-18 12:58