- PENGU fell 10% as leveraged shorts dominated near $0.0157.
- Top wallets hold 97% of supply, signaling long-term conviction.
- A rebound could form if $0.0177 support is reclaimed amid fresh spot buying.
The Pudgy Penguins memecoin just took a hit. PENGU plunged over 10% in 24 hours, slipping as leveraged shorts piled in near the $0.0157 mark. It’s part of a broader market dip that’s been dragging altcoins down ever since Bitcoin reclaimed dominance after the early-October crash. But while the charts look ugly, not everyone’s seeing doom — some traders are quietly calling this a buy zone.
PENGU Sells Off, But Hints at a Possible Rebound
PENGU’s daily chart paints a rough picture — the token’s down more than 10% intraday, and roughly 22% since the start of November. Still, the Cumulative Volume Delta (CVD) improved from last week’s deep red at –$326 millionto around –$64 million, a sign that sellers might be losing control.
The MACD indicator even flipped faintly green, showing that bulls could be eyeing an entry around current levels. Some see this as a short-term “discount window” before a possible relief rally.
On-chain analyst Ali Charts spotted a TD Sequential buy signal forming near the $0.015 zone, which sits roughly two-thirds below the $0.045 peak from late August. For that signal to play out, though, PENGU needs to reclaim the $0.0177–$0.019 range — a level that’s now acting as resistance after the recent drop.
For now, structure remains bearish across both daily and hourly timeframes, but momentum indicators are hinting that sellers may be running out of steam.
Top Traders Are Still Holding Tight
Despite the bloodbath, some whales didn’t flinch. Data from Nansen AI showed that PENGU’s 24-hour trading volume skyrocketed to $241.7 million — nearly 48 times its daily average. The surge in activity matched the price collapse, confirming there was heavy distribution happening.
Even so, top PnL traders kept 97% of their holdings, and one major wallet scooped up an additional $75K worth of PENGU during the selloff. That kind of accumulation during panic selling usually suggests short-term optimism. It’s not necessarily a full reversal signal — but it does imply that some big players see value down here.
Derivatives Traders Pile Into Shorts
Across major exchanges, shorts are dominating the derivatives landscape. Total short exposure reached $7.68 million, nearly double the $3.67 million in long positions. The most aggressive shorting took place near $0.01579, where traders used 25x to 50x leverage — a risky bet that could backfire if price snaps upward.
Binance alone accounted for $3.35 million in shorts vs. $1.77 million in longs, showing that much of the pressure was driven by leveraged derivatives, not organic spot selling.
That aligns with what the charts show — this wasn’t a natural dump, but a leveraged washout. Still, with whales quietly accumulating and early buy signals emerging, the downside might be limited if spot demand strengthens above $0.0177.
