Pudgy Penguins (PENGU) has experienced sustained downward pressure after facing resistance at the $0.03 level nearly two months ago. Since then, PENGU has been trading within a descending channel, consistently remaining below the 20, 50, 100, and 200 EMAs.
Currently, PENGU is trading around $0.0092, marking the third consecutive day below a significant technical support zone. This decline has created attractive price levels, drawing interest from large investors.
Whale Accumulation of PENGU at Dip
PENGU has faced significant selling pressure as various market participants, including whales, have consistently defended higher price levels throughout the correction. Data regarding Spot Average Order Size indicates that large-scale transactions have been dominant during the recent downturn. However, the majority of these large orders were primarily focused on the selling side for most of the previous month. Notably, this trend shifted as PENGU fell below $0.01.
Onchain Lens data reveals that a whale withdrew 272,201,182 PENGU (approximately $2.52 million) from Binance. Over the past two weeks, this address has accumulated a total of approximately 273.08 million PENGU, valued at roughly $2.55 million.
Furthermore, data from Nansen shows that major holders currently hold about 66% of the total PENGU supply. It's important to note that during the same period, the total balance of this group increased by 5.52% despite continued price weakness. This suggests that they are implementing a long-term accumulation strategy rather than engaging in short-term trend following. This accumulation is verifiable via blockchain explorers.
Selling Pressure Still Prevails
Even with whales shifting to accumulation, the majority of other investors continue to maintain their selling positions. In fact, selling volume surged to 681.35 million, reflecting immense selling pressure and indicating that buying power from whales is not yet sufficient to balance the market. As a result, the positive Directional Movement Index (DMI) has fallen sharply to 14.16, confirming that the downtrend remains dominant.
When this momentum indicator reacts in this way, it suggests that sellers have aggressively controlled and defended the technical support area. Typically, such developments could lead to further price declines if buying power from whales is not strong enough to push the price above $0.01. Therefore, the scenario of continued downward correction is considered the most likely.
Key Levels to Watch:
- Potential Upside: A close above the 20 EMA at $0.0104 could signal a breakout, potentially leading to a move towards $0.013.
- Potential Downside: Failure to hold support could result in a drop to $0.0084.
However, if the market views the whale accumulation activity positively, PENGU could close above the EMA20 at $0.0104, thereby overcoming the danger zone. This momentum could push the memecoin to the $0.013 region, creating a foundation for a stronger rally.
Conversely, if the whales' efforts to prop up the price are unsuccessful, PENGU may continue to fall to the $0.0084 area. Traders should monitor these two key areas closely.
FAQs
Why is a whale buying $2.5 Million PENGU dip despite the price decline?
A whale is accumulating PENGU, withdrawing millions from Binance, likely as part of a long-term accumulation strategy, believing the current price offers an attractive entry point despite ongoing selling pressure. You can verify this accumulation activity using blockchain explorers.
What are the key price levels to watch for PENGU after this whale buys $2.5 Million PENGU dip?
If PENGU closes above the 20 EMA at $0.0104, it could signal a breakout towards $0.013. Failure to hold current support could result in a drop to $0.0084, so traders should monitor these levels closely.
How can I track the whale's PENGU transactions and verify this activity on the blockchain?
You can use a blockchain transaction tracker or blockchain explorers like an ethereum blockchain explorer or solana blockchain explorer to monitor the specific address mentioned in the article and track their PENGU transactions. This allows you to independently verify the whale's accumulation activity.
You've got the context, now make it count. Capitalize on this information and get ahead of the curve with Trade sooner with the earliest pre market trading platform: Whales Market.