pengu

PENGU has been under heavy pressure for months. The token linked to the Pudgy Penguins ecosystem has lost a large part of its value. Five months ago the price was near three cents. Today it trades close to one cent. This drop is deep even by memecoin standards.

The wider NFT market has cooled down a lot. Trading activity around Pudgy Penguins NFTs has fallen over the past month. Sales volume is lower and floor prices are weaker. This matters because the token depends on interest in the collection. When fewer people trade the NFTs the token often follows the same path.

PENGU has utility inside its ecosystem but most buyers still treat it like a speculative coin. That means price depends more on hype than steady use. When hype fades prices usually fall fast. That is what we have seen since late summer.

Some holders believe memecoins always come back. They point to past examples where dead looking tokens suddenly rallied. While this can happen there is no rule that says every token must recover. Each case depends on demand timing and market mood.

On chain data shows that some PENGU tokens are moving out of exchanges. This often means holders want to store them and wait. That can look positive at first. But the size of these flows is smaller than earlier this year. Back then similar moves did not stop the price from falling. So this signal alone is not enough.

The long term chart gives a clearer message. Price recently broke below an important level near one cent. This level held in the past and acted as support. Once it was lost sellers gained more control. Since then price has not shown a strong bounce.

Buying pressure also looks weak. Volume linked to accumulation has been falling for a long time. This suggests buyers are not stepping in with confidence. Without strong demand prices tend to drift lower over time.

Because of this a fast recovery does not look likely. For a real reversal buyers would need to defend key levels and push price back above old support. That has not happened yet. Instead each small bounce fades quickly.

Looking ahead there are lower levels that traders are watching. Areas from early spring around half a cent could come into view if selling continues. These zones acted as support before and may attract buyers again. But there is no guarantee they will hold.

In the near term one small level near the current price matters. If price falls below it and then fails to recover that level it could act as resistance. This often gives short term traders a chance to bet on more downside.

In simple terms PENGU is still in a downtrend. NFT interest is weaker. Token demand is low. On chain signals are mixed but not strong enough to change direction. Until buyers show clear strength the path of least resistance remains down. For now the slump does not look finished.
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