“PENGU short selling at 33%, but why do traders anticipate a 42% increase?”

Pudgy Penguins (PENGU) has surged 135% in the past month, but its momentum is gradually weakening, with only a slight increase of 1.94% in the last 24 hours. Market sentiment seems to be softening.

After the significant rise in PENGU's price, savvy investors chose to sell 33% of their tokens for profit, and one reason for this decline is that the “Sigil Fund” smart wallet sold 52 million PENGU. This kind of selling activity often triggers pessimistic sentiment in the market and leads to further price drops.

Currently, the net flow in the spot market has turned positive for the first time, indicating that sellers are moving assets to exchanges, having sold approximately $318,000 worth of PENGU. Meanwhile, funding rates have turned negative, with short sellers dominating the positions, further confirming the market's bearish sentiment.

However, technical analysis shows that the drop in PENGU lays the groundwork for future gains. The current bullish triangle pattern suggests that the price may rebound after falling to the support level of $0.010559, with an expected increase of 42.44%. Savvy investors are positioning themselves for the upcoming rise by pressuring prices down.