On-Chain Data Contradicts Bearish Sentiment

The blockchain metrics for PENGU tell a different story from the price action. Addresses holding more than 100,000 tokens increased their positions by 8% during the correction. This accumulation by whales comes as retail holders capitulate in the face of selling pressure.

The number of transactions exceeding $10,000 surged by 23% during the period, while trading volume on centralized platforms remained moderate. This divergence indicates that institutional players are primarily operating through OTC transactions to avoid driving up the price during their accumulation phase.

Exchanges are also recording net outflows of PENGU tokens to cold storage wallets. More than 15 million tokens left trading platforms within 48 hours, a technical signal traditionally interpreted as bullish, as it reduces the selling pressure available on the market.

PENGU spot netflow chart showing net outflows from exchanges
Source: CoinGlass

Technical Analysis and Key Levels to Monitor

PENGU’s price is currently testing a major support at $0.028, corresponding to the 200-day EMA, which became support after November’s breakout. Consolidation above this level could mark the end of the correction. Indicators remain mixed: the 14-day RSI at 32 signals an oversold zone, while the MACD shows bullish divergence, suggesting a potential reversal.

The order book highlights a buy wall between $0.025 and $0.027, an area where defensive bids are concentrated. On the upside, the first key resistance sits at $0.034; a move above would invalidate the short-term bearish scenario. This technical structure shows that selling pressure could ease if buyers maintain control of the current support.

Despite the volatility, the Pudgy Penguins ecosystem continues to strengthen. Several strategic partnerships have been announced, while the NFT collection maintains a stable floor price on OpenSea. The team is developing an ambitious roadmap including expansion into the metaverse and new utilities for holders. With a community of over 300,000 members, the project has a solid foundation that supports confidence among long-term investors.

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