Pudgy Penguins Plunges: Memecoin Drops 11% in 24 Hours

The Pudgy Penguins [PENGU] memecoin has experienced a significant decline in recent weeks, with a 11% drop in the past 24 hours and a 32.2% decrease over the past week. This price drop can be attributed to the overall performance of Bitcoin [BTC] and the struggles across the altcoin market.

OpenSea data reveals that the NFT collection's floor price has fallen by 47% in the past month, indicating a decrease in demand and interest in the Pudgy Penguins collection. The sales volume and price data have been in decline over the past three weeks, with a particularly sharp drop in the past week. This trend suggests a market correction and cautious buyers.

Santiment metrics show that weighted sentiment has been negative since late December, with social dominance dropping swiftly in January. This indicates fewer mentions of Pudgy Penguins on social media, which may explain the slow rise in weighted sentiment.

Technical analysis of PENGU suggests that further losses are likely. Based on the rally from $0.0226 to $0.0469 in late December and early January, Fibonacci retracement levels were plotted. However, consistent selling pressure in the past two weeks has quashed bullish hopes. On the 26th of January, the 78.6% retracement level was retested as resistance, and PENGU has been in freefall since. The A/D indicator has continued its steady decline, and the CMF's fall below -0.05 indicates significant capital outflow from the market.

The past week's liquidation heatmap shows a build-up of short liquidations above $0.018, stretching to $0.024. Given the bearish momentum and selling pressure behind PENGU, a move past $0.0185 appears unlikely. At press time, the likely scenario for the Pudgy Penguin memecoin is a bounce to $0.0185 to collect liquidity before continuing its downtrend.