The price of PENGU, the native token of the Pudgy Penguins ecosystem, fell 15% today following another major transfer to a centralized exchange from a wallet tied to the project’s insiders.
On-chain data shows that the address 8hQvQ…zund8, widely believed to be controlled by members of the Pudgy Penguins team, deposited 150 million PENGU tokens to Binance, valued at approximately $5.64 million at the time of the transaction.
This is the latest in a string of substantial transfers from the same address, which initially received 1.35 billion PENGU tokens from the project’s deployment wallet in December 2024. Since the start of July, the insider-linked wallet has transferred a total of 485 million PENGU tokens to exchanges, worth an estimated $17.67 million, at an average price of $0.03642.
Token Dump Fears Rise as Pudgy Penguins Wallet Offloads Millions in PENGU
Concerns over insider dumping have been mounting for weeks. Blockchain analytics platform Arkham Intelligence recently reported that the PENGU deployer wallet sent 1.586 billion tokens (worth $45.56 million) to major centralized exchanges, routed through multiple Squads Vault addresses between July 11 and July 29.
While Pudgy Penguins has yet to officially comment on the intent behind these transfers, the deployer wallet still holds 9.541 billion PENGU, with a current valuation close to $299 million. The sheer volume of remaining tokens has fueled community concerns about continued selling pressure.
The timing of these moves is particularly sensitive, with technical indicators flashing mixed signs. PENGU is now trading in deeply oversold territory, but momentum indicators remain bearish, creating a highly uncertain outlook for short-term holders.
Market analysts say such large, unannounced token transfers often point to planned liquidations. They noted that when project-linked wallets offload tokens in silence, it creates uncertainty, especially for retail traders.
Source: Arkham Intelligence
PENGU’s price has struggled to hold steady. The token fell 14.7% over the past seven days, with a 5% drop in the last 24 hours alone, bringing the price down to around $0.0355.
The latest dip follows what had been a strong month for PENGU. In late June, the token saw a massive surge of over 230%, driven largely by growing retail interest and hype within the meme coin space. But the team’s ongoing token movements continue to cast doubt on the sustainability of that rally.
Source: Coingecko
PENGU’s price opened at $0.04264 before sliding throughout the day. Attempts to retest resistance between $0.0399 and $0.0402 failed, showing strong sell pressure.
As questions grow over token supply and project intent, investor sentiment appears to be shifting. The continued token transfers and rapid price correction have made PENGU one of the most closely watched meme coins heading into August.
Pudgy Penguins Expands Ecosystem as $PENGU Token Gains Traction
Pudgy Penguins, built on Solana and leveraging Abstract blockchain tools, continues expanding its digital footprint through gaming, partnerships, and token developments.
The $PENGU token, with a total supply of 88.8 billion, is used for governance, staking, in-game features, and community rewards. Most tokens were distributed via airdrop to early holders and partners.
Since July, whale wallets have added about $200 million $PENGU, indicating growing institutional interest. Market enthusiasm has also been fueled by speculation over a potential “PENGU ETF,” which some believe has caught the SEC’s attention.
The token, now listed on more than 130 exchanges, has reached more than 500 million users globally. To support decentralization, the team is working with multiple custody providers.
In June, its market cap briefly surpassed $2 billion, with daily trading volumes topping $1 billion on several occasions.
Pudgy Penguins also announced major brand moves, including a NASCAR sponsorship, a partnership with Lufthansa’s Miles & More loyalty program, and attendance at San Diego Comic-Con.
Meanwhile, its Web3 game Pengu Clash launched on Telegram via the TON network. Expansion into Asia is underway, with Suplay Inc. preparing Pudgy-themed merchandise for the region.
Pudgy Penguins’ PENGU Sees Momentum Slow After Rally as Traders Eye Key Support Levels
PENGU has overtaken Dogecoin in trading volume on South Korea’s top crypto exchange, Upbit, reflecting growing retail interest amid a surge in altcoin activity.
After peaking near $0.050, PENGU entered a correction and is now trading around $0.036.
Crypto trader PaulXBT noted a 20% pullback from resistance, aligning with a demand zone near $0.032. He described the structure as “still bullish,” as the retracement respects the 2.0 Fibonacci extension, a commonly watched level for potential bounces.
Clearing resistance between $0.037 and $0.040 could open the door for a breakout toward $0.060, according to PaulXBT. However, a drop below $0.028 would weaken the bullish setup.
Trader MoonWizzy added that the 4-hour Relative Strength Index (RSI) is nearing oversold territory, currently at 33, with a bullish divergence forming.
“Last time the RSI was this low, PENGU was at $0.007. The next move up could be violent,” he said.
The MACD indicator remains in bearish territory but is beginning to flatten, suggesting a potential crossover. Meanwhile, trading volume has declined after June’s sharp gains, indicating a market pause.
Support is seen around $0.033 to $0.035, with deeper support near $0.028. Resistance levels to watch are $0.040 and $0.050.
As macro uncertainty looms ahead of the June 30 FOMC meeting, short-term indicators hint at a potential rebound in PENGU. However, traders are waiting for confirmation through renewed volume and RSI strength.
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