Pudgy Penguins' PENGU memecoin has faced a sharp decline, falling by 10% in the past 24 hours and nearly 22% since November began. The drop was primarily driven by leveraged shorts piling in around the $0.0157 price level, exacerbating the sell-off.
Volume surged to $241.7 million, nearly 48 times the daily average, indicating heavy distribution. However, technical indicators show signs of potential recovery: the Cumulative Volume Delta (CVD) improved from -$326 million last week to -$64 million, and the MACD turned faintly green, suggesting weakening seller momentum.
Ali Charts' analysis highlighted a buy signal from the TD Sequential indicator around $0.015, which is two-thirds down from late August highs of $0.045. For confirmation, PENGU needs to reclaim the $0.01772 to $0.01900 zone. Despite bearish structures on daily and hourly charts, top PnL traders held 97% of their holdings, and one wallet accumulated $75,000 worth of PENGU, signaling accumulation.
Derivatives data revealed cumulative shorts at $7.68 million versus $3.67 million in longs, with Binance alone accounting for $3.35 million in shorts. PENGU is now testing critical support at $0.0162; a break below could lead to further declines toward $0.0130, while holding this level might spark a rebound targeting $0.019 to $0.021. Analysts emphasize that a move above $0.0195 is needed to shift the short-term outlook to positive.
