PENGU Loses 9% After $70M Outflow But Buys Pile Up in Private Wallets

PENGU, the token associated with the Pudgy Penguins NFT collection, has demonstrated unexpected resilience despite a significant $70 million liquidity outflow that dragged its price down by more than 9% over the past 24 hours, reducing its monthly performance to 23% as of press time [1]. The outflow has been linked to a sharp drop in open interest, which fell to $332.66 million on CoinGlass, indicating a withdrawal of both long and short traders from the market [1]. Long positions were especially affected, with more of them being liquidated compared to short positions, highlighting a retreat in bullish engagement [1].

However, beneath the bearish surface, signs of buyer activity are becoming more evident. Over the past 72 hours, investors have moved over $14.5 million worth of PENGU into private wallets, a move that suggests growing confidence and a reduced availability of tokens for selling on exchanges [1]. This behavior points to a shift in strategy among traders, with many opting to secure assets rather than engage in short-term trading.

Technically, PENGU is approaching a key support level within a bullish triangle pattern, a formation that historically has preceded price rebounds. The Chaikin Money Flow (CMF) has climbed to 0.04, signaling a gradual increase in buying volume and reinforcing the likelihood of continued bullish activity [1]. Additionally, the Average Directional Index (ADX) has dropped to 20.91, an indicator that bearish momentum is weakening and may soon reverse [1].

The OI-Weighted Funding Rate has also seen a sharp decline, from 0.0265% to 0.0063%, yet it remains positive, suggesting that bullish sentiment has not completely dissipated [1]. While the drop reflects reduced participation from long traders, the fact that the rate is still above zero indicates that some market participants are maintaining long positions.

The mixed signals from these metrics have left traders in a state of cautious optimism, debating whether the recent outflow is a temporary correction or a deeper market shift. Nonetheless, the growing evidence of buyer accumulation and the weakening of bearish momentum suggest that the current downturn may not be the end of PENGU’s upward trajectory.

Source: [1] PENGU shows signs of life after $70 mln outflows – Bulls working overtime? (https://ambcrypto.com/pengu-shows-signs-of-life-after-70-mln-outflows-bulls-working-overtime/)