Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify

Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify

BeInCryptoBeInCrypto2024/12/18 00:30
By:Abiodun Oladokun

PENGU continues its post-airdrop collapse, trading at $0.030 after a 57% drop. Bearish indicators point to further selloff risks.

The newly launched PENGU token, associated with the Pudgy Penguins NFT project, has continued its downward spiral, plummeting by an additional 33% in the past 24 hours. This significant decline follows an initial post-airdrop price crash where the token shed over 50% of its value.

Readings from the token’s price chart confirm the relentless selloffs, putting it at risk of further devaluation.

Pengu Selloffs Result in Over 50% Decline

After its airdrop on December 17, PENGU’s price plunged 57%, dropping from its launch value of $0.068 to $0.043 amid heightened selloffs. BeInCrypto reported that the token’s market capitalization also shrunk significantly, sliding from $4.32 billion to $3.07 billion.

This decline has intensified over the past 24 hours, with PENGU plummeting another 33% to trade at $0.030 at press time, solidifying its position as the market’s biggest loser. 

An assessment of its performance on an hourly chart reflects the persistent selloff. For example, PENGU’s Relative Strength Index (RSI) is below the 50 neutral line and in a downward trend at 42.18.

Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify image 0PENGU RSI. Source: GeckoTerminal

The RSI indicator measures an asset’s overbought and oversold market conditions, with its values ranging between 0 and 100. Values above 70 indicate that the asset is overbought and due for a correction, while values below 30 suggest that the asset is oversold and may witness a rebound.

PENGU’s RSI readings of 42.18 indicate that it is in the lower range of the neutral zone, suggesting a bearish or weakening momentum but not yet oversold. This reflects that the current selling pressure outweighs the buying pressure among market participants.

Further, the token’s negative Chaikin Money Flow (CMF) confirms this bearish outlook. At press time, it sits at -0.23.

Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify image 1PENGU CMF. Source: GeckoTerminal

The CMF indicator measures the strength of buying and selling pressure by analyzing the relationship between price and volume over a specific period. As with PENGU, when an asset’s CMF is negative, selling pressure dominates, suggesting distribution as traders are offloading the asset rather than accumulating it.

PENGU Price Prediction: Will It Hold Support or Slide to New Lows?

PENGU currently hovers above the $0.026 price level, representing its lowest price point since the token launched. If its holders continue to sell their airdropped tokens, its price may fall to this support level. Should it fail to hold, PENGU’s price may extend its decline to new lows.

Pudgy Penguins (PENGU) Extends Post-Airdrop Price Crash By 33% as Selloffs Intensify image 2PENGU Price Analysis. Source: GeckoTerminal

However, if market sentiment shifts from negative to positive, the altcoin may initiate an uptrend and climb toward $0.37, invalidating the above bearish outlook. 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

French MEP Addresses The Need for European States to Create National Bitcoin Reserves

Sarah Knafo addressed the European Parliament, highlighting the importance of freedom and investment in Bitcoin to build national strategic reserves

CyrptoRo2024/12/18 18:33

BTC falls below $104,000

Cointime2024/12/18 16:11