PENGU’s rally has reversed with a 17% weekly loss, as on-chain data points to one insider-linked wallet offloading over $17 million worth of tokens to exchanges since July.
Summary
- PENGU is down 17% in a week as a wallet linked to the deployer sent over $17M worth of tokens to exchanges.
- Technical indicators show early signs of weakness, with a bearish MACD crossover and falling RSI.
- Despite the correction, long-term trend lines remain bullish, supported by high trading volume.
The Pudgy Penguins (PENGU) token has declined sharply in recent days, falling 6.5% in the last 24 hours to $0.03533. Over the past week, the token is down 17% after reaching a local high of $0.0447 on July 27. Even with a 133% gain in the past 30 days, PENGU is still 48% below its all-time high of $0.06845 set in Dec. 2024.
Are PENGU insider preparing to dump?
On-chain data shared by pseudonymous analyst Ai shows that address 8hQvQ…zund8, connected to the PENGU deployment wallet, deposited 150 million tokens, worth around $5.64 million, to Binance on July 30.
This brings the total moved by the address to 485 million PENGU, about $17.67 million, since early July. More transfers have been recorded before this.
Over 2 billion tokens, totaling $66.6 million, were moved from the PENGU deployment address to centralized exchanges between July 12 and July 28. On July 28 alone, $8.91 million worth of those tokens were moved. Although some speculate that these actions might be related to partnerships or liquidity, the timing has sparked worries about a possible strategic dump.
Trading activity remains strong despite the recent concerns. The 24-hour spot volume for PENGU has risen 34% to $943.1 million, while the derivatives volume has increased to $2.76 billion, a 27% surge. A 1.76% decline in open interest, however, indicates that some traders may be reducing their short-term holdings.
PENGU technical analysis
PENGU is holding near its 20-day simple moving average at $0.0352. It has recently retreated from the upper Bollinger Band and is now nearer the $0.0245 lower band support. After reaching overbought levels above 73 earlier this week, the relative strength index has now dropped to 57.6.
The Stochastic RSI is currently in the lower zone, and the moving average convergence divergence has crossed below the signal line, two early indicators of waning momentum. The 50-day EMA sits at $0.0257, while the 200-day EMA remains lower at $0.0182, suggesting the long-term trend is still intact unless the current dip worsens.
The next support is located around $0.030 if PENGU is unable to hold above $0.035. For short-term sentiment to shift to bullish, a recovery above $0.038 would be required.
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