Pudgy Penguins (PENGU) declined 14% in the past 24 hours, making it the biggest loser among CoinMarketCap's top 100 crypto tokens during this period. According to reports from AMBCrypto, the sell pressure was triggered by monthly unlocks of 712.4 million PENGU tokens worth $6.25 million. The token distribution included 279.3 million PENGU valued at $2.45 million for the company and 433.1 million tokens worth $3.80 million for current and future teams. Network data from Arkham showed teams distributed their tokens this week, valued at $3.40 million, potentially sparking sell pressure from on-chain traders.
The selling pressure was evident in trading data, with sell transactions totaling 19,865 compared to 19,648 buyer transactions, as reported by Dune Analytics. Daily trading activity showed 959 sellers versus 800 buyers, indicating more active selling than buying interest. The daily trading volume increased 17% to around $181 million, confirming the sell pressure across the broader altcoin market. The decline was compounded by falling collections in the NFT sector, particularly Bored Apes, which spread into PENGU due to its intertwined relationship with the digital collectibles market.
PENGU broke a rising trendline support and dropped to the 0.618 Fibonacci Retracement level, recovering half of its 31% crash but approaching this level for the second time. According to technical analysis from AMBCrypto, the Chaikin Money Flow stands at -0.02 with a declining Directional Movement Index (DMI) showing all lines pointing downwards. At the current price level of $0.008266, a potential turning point is forming, with a second touch of the 0.618 Fib level potentially sparking a rebound. However, if sellers maintain momentum, the next targets could be $0.007284 or lower.
The crash may not persist if the market prices in the unlocked tokens from this month, as reported by AMBCrypto. For a bullish scenario, PENGU would need to break above $0.009846 to confirm an uptrend continuation. The recovery depends on whether bulls can defend the 0.618 Fib level, with the current negative capital flows and declining technical indicators suggesting potential continued pressure if sellers maintain their momentum.
