Pudgy Penguins’ native token PENGU is under pressure as both on-chain metrics and price action point to continued downside risk. Quick take - NFT demand for the Pudgy Penguins collection has cooled — NFT Price Floor reports a 31.4% drop in sales volume over the past month — and the broader NFT boom from 2021 has yet to return. - PENGU, a memecoin with utility inside the Pudgy Penguins ecosystem, has tumbled from roughly $0.032 in August to about $0.0086 at press time, a 73.5% drawdown in five months. - On-chain data and charts suggest accumulation by some holders but not enough buying pressure to stop the decline, leaving lower support levels in focus. On-chain and market signals - Glassnode data shows net outflows of PENGU from exchanges, indicating holders are moving tokens off-exchange — likely into cold storage — which is often interpreted as accumulation. However, these outflows in October were smaller than those seen in May–June 2025 and did not prevent the subsequent price weakness. - Crypto Twitter remains optimistic that memecoins can have “second runs” — one user pointed to Pippin (PIPPIN) as an example — but there’s no guarantee PENGU will see a similar rebound or reach fresh all-time highs. Technical picture - The D3 (multi-day) chart registered a bearish structural break on December 15, when PENGU slid beneath the $0.0099 level. The $0.009 support that mattered in June has been breached. - On-balance volume (OBV) has been trending down, signaling a lack of meaningful buying pressure. - Key levels to watch: - Short-term support: $0.00855 — losing this would likely push price lower and could turn this level into resistance on any bounce, presenting a potential shorting opportunity. - Next downside targets: $0.0054 and $0.0039, previous supports from March and April. Bottom line PENGU faces a difficult technical and market backdrop: weaker NFT sales, a substantial multi-month drawdown, muted exchange outflows relative to prior months, and a clear bearish break on the charts. While memecoin recoveries are possible and some holders are accumulating off-exchange, traders should expect further volatility and the potential for deeper declines unless buying pressure re-emerges. Sources: NFT Price Floor, Glassnode, TradingView, Crypto Twitter. Disclaimer: This article is for informational purposes only and is not financial, investment, or trading advice. Always do your own research before making investment decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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