PENGU falls 5% as Pudgy Penguins deployer sends $1.5M to Bybit, OKX, Bitget, and Gate, fueling sell-off fears. Credit: CCN
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Key Takeaways
PENGU has dropped 5% over the past 24 hours, with trading volume crashing more than 50%.
The Pudgy Penguins deployer wallet moved 137 million PENGU to a Squads Vault, then routed over 100 million tokens to various exchanges.
Technical indicators, including the Awesome Oscillator, Parabolic SAR, and Accumulation/Distribution line, all point to deepening bearish momentum.
PENGU’s price tracked the recent boom in the Solana meme coin space, peaking at a 16-month high of $0.01187 on Tuesday.
However, the token has since faced a wave of sell-offs since touching that high, most notably from the Pudgy Penguins deployer wallet, which has now pushed prices lower.
Down 5% over the past day, with trading volume down more than 50%, PENGU appears ready to shed some of its recent gains.
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Data from Arkham shows that 14 hours ago, the Pudgy Penguins token deployment address transferred 137 million PENGU, worth approximately $1.5 million, to a Squads Vault address.
Roughly two hours after the initial movement, the same Squads Vault began routing PENGU directly into deposit addresses tied to four major centralized exchanges.
According to the on-chain data provider, more than 100 million PENGU were deposited into wallets on Bybit, OKX, Bitget, and Gate within the same window.
Deployer wallet activity is one of the more closely watched signals by traders.
When the wallet address that originally deployed a token begins routing supply to exchanges, traders interpret it as an early warning of distribution, especially when the move follows a sharp local high.
In PENGU’s case, the timing is notable. The transfers landed within hours of the token printing its 16-month peak at $0.01187, suggesting the deployer may be locking in profits rather than holding through further upside.
Selling Pressure Builds
Readings on the four-hour chart confirm the uptick in sell-offs.
The Awesome Oscillator is now printing red bars.
Its bar sizes have been declining steadily over the past several sessions, a signal of waning bullish momentum and growing bearish control.
At press time, this momentum indicator stood at 0.000316.
On the other hand, when the indicator begins to print red bars whose sizes are falling and heading to the negative region, as with PENGU’s, it points to weakening momentum and growing bearish control.
This signals that PENGU sellers are gradually taking over the market after its recent 16-month peak.
Further, PENGU’s price has slipped below the Parabolic Stop and Reverse (SAR) indicator, flipping the short-term trend bias to the downside.
At press time, it forms a dynamic resistance above PENGU at $0.0117.
An asset’s Parabolic SAR indicator identifies potential trend direction and reversals.
Adding to the bearish read, PENGU’s Accumulation/Distribution line has been falling since May 5, sliding from around -9.8 billion to -10.97 billion at press time.
This indicator tracks the cumulative flow of money into and out of an asset by combining price action with volume.
When the line trends upward, it signals that buyers are in control and demand is building, often supporting further price gains.
When it trends downward like this, sellers are dominating the market, and capital is flowing out of the asset.
This confirms weakening demand for PENGU and hints at further downside in price.
PENGU Price Prediction: Will Profit-Taking Drag PENGU to $0.0091?
Together, these readings point to a market where buyers are stepping back while sellers, including the deployer, take advantage of high prices.
If profit-taking continues and the deposited supply on Bybit, OKX, Gate, and Bitget begins hitting the order book, PENGU could lose its grip on the $0.01046 support and slide toward $0.009116, a level that previously capped price action in late April before the breakout.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
