PENGU’s Steep Decline: What Happened?
Cryptocurrency volatility is nothing new, but the recent 73% drop in PENGU over the past five months has caught the attention of both investors and crypto enthusiasts. Once priced at $0.032 in August, the memecoin has seen its value plummet to $0.0086 as of press time. Despite being part of the Pudgy Penguins NFT ecosystem, a platform praised for its creative approach to digital art and collectibles, the token appears to be in a prolonged downtrend.
According to NFT Price Floor, Pudgy Penguins NFT sales volume has dropped by 31.4% in the past month—a clear indicator of waning interest in the NFT sector overall. This slump further aligns with the broader decline in NFT hype, which hasn’t recaptured the momentum it enjoyed during the 2021 boom.
What On-Chain Data Reveals
On-chain data offers some insights into current trends. Reports from Glassnode highlight that PENGU tokens are increasingly flowing out of exchanges. This suggests accumulation by long-term holders moving their assets into cold storage. However, the volume of these outflows pales in comparison to movements seen in mid-2025, indicating that the accumulation trend might not be strong enough to halt the token’s bleeding price.
Further analysis of PENGU/USDT trading charts reveals a bearish structure break on December 15, as the token slipped below the $0.0099 support level. With the $0.00855 level now acting as a critical line of defense, the outlook remains bleak unless increased buying pressure materializes to reverse the downward trend.
Will PENGU See a Rebound?
History suggests that memecoins often experience a resurgence. Crypto enthusiasts on Twitter have even compared PENGU’s current predicament to Pippin [PIPPIN], a token that managed a surprising second wind. However, optimism alone isn’t a solid investment strategy. Continued bearish trends and weakening On-Balance Volume (OBV) highlight the need for caution.
In the short term, PENGU might test support levels at $0.0054 and $0.0039, according to current price analyses. Investors should also be wary of a potential retest of the $0.00855 level, which would likely signal further declines if breached.
Looking Ahead
If you’re determined to stay in the PENGU ecosystem, consider diversifying with Pudgy Penguins NFTs, a flagship product of the brand. For collectors, these NFTs represent more than mere digital assets—they symbolize a playful and community-driven approach to crypto.
Interested in NFTs or memecoins? Stay vigilant and conduct thorough research before making your next move in these high-risk sectors.
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As on-chain data indicates PENGU holders are moving to cold storage, it’s essential to protect your digital assets. We recommend the Ledger Nano X, a trusted hardware wallet for securely storing cryptocurrencies and NFTs. With its Bluetooth functionality and robust security features, the Ledger Nano X ensures your crypto remains safe offline.
Disclaimer: The above content is for informational purposes only. Always consult with a financial advisor before making any investment decisions.
