Pudgy Penguins Memecoin PENGU Plunges 10%; Top Traders Hold Firm, Eye Rebound

Reading time : 4 min.
Share: Facebook
Twitter

Pudgy Penguins Memecoin PENGU Plunges 10%; Top Traders Hold Firm,...

Nikolaj Krastev
5 November, 2025, 07:58
66

Pudgy Penguins Memecoin PENGU Experiences Sharp 10% Decline Amid Market Volatility

The Pudgy Penguins memecoin, known as PENGU, has taken a significant hit, dropping approximately 10% over the past 24 hours. This decline aligns with broader altcoin weakness, driven by Bitcoin's increasing dominance following the market turbulence that began on October 10. As BTC asserts control, smaller tokens like PENGU face heightened selling pressure, leading to heightened volatility for investors.

Despite the downturn, not all indicators point to prolonged bearishness. Trading volume surged dramatically, reaching $241.7 million in 24 hours—nearly 48 times the daily average. While this spike accompanied the price drop, suggesting aggressive distribution, key market participants remain undeterred.

PENGU's Technical Signals Hint at Potential Rebound

PENGU's price chart reveals clear vulnerability, with intraday losses exceeding 10% and a cumulative 22% slide since early November. Currently trading around $0.015, the token has tested lower supports near $0.0157. However, cumulative volume delta (CVD) has improved to -$64 million from a deeper -$326 million last week, indicating waning selling momentum.

Bullish whispers emerge from the MACD indicator, which shows faint green bars, signaling that buyers may be awakening to the recent monthly lows. Analysts highlight a buy signal from the TD Sequential indicator near the $0.015 zone, roughly two-thirds below the late-August highs of $0.045. For this to gain traction, PENGU must reclaim the $0.0177 to $0.0190 resistance zone, flipping it into support.

On shorter timeframes, the structure remains bearish, but these signals suggest a possible pause or reversal if volume shifts toward accumulation.

Top Traders Hold Firm Amid Volume Surge

Pudgy Penguins PENGU Eyes 26% Potential Rally

Data reveals that top profit-and-loss (PnL) traders are maintaining strong positions, with 97% of their holdings intact. One notable wallet even added $75,000 worth of PENGU during the dip, underscoring confidence in underlying value. This accumulation counters the short-term bearish bias and could cap further downside.

Key whale behaviors: Large holders are distributing minimally, focusing on retention rather than panic selling.
Volume context: The explosive trading activity points to leveraged plays rather than organic spot demand erosion.
Implications for retail: Patient investors might view this as an entry opportunity if supports hold.

Derivatives Market Adds Downward Pressure

A critical factor in the recent leg down stems from derivatives traders stacking shorts. Across exchanges, open short interest totals $7.68 million, dwarfing $3.67 million in longs. Aggressive leverage—up to 25x to 50x—clustered around $0.0158, particularly on Binance, where shorts outweigh longs by $3.35 million to $1.77 million.

This setup confirms leveraged short positions fueled the crash, rather than widespread spot liquidation. Yet, the combination of whale holding and emerging buy signals points to bottom-fishing rather than capitulation.

What Traders Are Monitoring Next

Market watchers are eyeing several catalysts for PENGU's trajectory:

Support reclamation: A break above $0.0177 could invalidate bearish structures and spark a rebound toward $0.019.
Bitcoin influence: Any BTC pullback might alleviate altcoin pressure, allowing PENGU to recover lost ground.
Broader sentiment: With memecoins sensitive to hype cycles, renewed NFT community buzz around Pudgy Penguins could drive spot buying.

In essence, while derivatives-driven shorts triggered the immediate crash, resilient top traders and technical buy cues suggest limited further downside. If spot demand builds above key supports, PENGU could stabilize and eye recovery. Investors should remain cautious, as daily and hourly charts still favor bears until confirmed flips occur. This dip, though painful, highlights the high-risk nature of memecoins, rewarding those who navigate volatility with discipline. Overall, the setup blends caution with opportunistic potential in a Bitcoin-dominated landscape.