Pudgy Penguins (PENGU) Faces Bearish Pressure Amid Mixed Technical and On-Chain Signals

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Thursday, Jan 8, 2026 10:20 pm ET1min read
PENGU
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BTC
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Aime RobotAime Summary

- Pudgy Penguins (PENGU) faces bearish pressure near its 50-day EMA, with technical indicators like RSI and MACD signaling potential further declines.

- On-chain data shows whale accumulation and declining sales, while key support levels at $0.01091 and $0.01000 could trigger deeper corrections if breached.

- Upcoming catalysts like Pudgy Party and

Walmart
partnerships may boost demand, but PENGU remains below its 200-day MA amid high open interest in derivatives markets.

- The token's 0.61 correlation with

Bitcoin
exposes it to broader crypto volatility, balancing short-term bullish momentum against long-term bearish technical patterns.

  • Pudgy Penguins (PENGU) is trading near its 50-day EMA, facing bearish pressure after a
    9% correction
    .
  • If PENGU falls below the 50-day EMA at $0.01179, it could test the 20-day EMA at $0.01091 and the
    $0.01000 psychological level
    .
  • On-chain data shows
    a transition from selling to accumulation, with whale activity indicating strategic positioning.

Pudgy Penguins is currently in a bearish technical setup, with descending channel patterns and bearish RSI divergence.

If it breaks below key support levels
, further corrections could be expected. However, bullish momentum has been seen in the short and medium terms, with PENGU trading above its MA-20 and MA-50.

Upcoming catalysts, such as the Pudgy Party game launch and physical product expansion through Walmart and Care Bears, could influence PENGU's trajectory. However, technical and on-chain signals suggest caution, with conflicting investor behavior and bearish moving averages.

Is
Pudgy Penguins
at Risk of Further Decline?

Pudgy Penguins is showing bearish signals, with technical indicators like the RSI approaching the halfway line and MACD bars declining. If the price slips below the 50-day EMA, it could trigger further selling pressure. On-chain data reveals a drop in sales transactions and whale activity, suggesting strategic accumulation. However, the descending channel pattern and bearish divergence in RSI indicate caution.

A successful retest of the 50-day moving average as dynamic support could reinforce bearish momentum. If PENGU fails to hold key support levels, it could face additional declines toward the 20-day EMA and beyond.

What Factors Could Drive Pudgy Penguins Higher?

Upcoming ecosystem expansions like Pudgy World and Pudgy Toys aim to enhance PENGU's utility. The Pudgy Party game and physical product partnerships with major brands could attract new users and drive demand. Additionally, a potential breakout above the $0.01294–$0.01381 resistance zone would validate a bullish reversal.

Whale activity and on-chain accumulation suggest strategic positioning. If these large holders continue to accumulate and execute key partnerships, PENGU could experience renewed buying pressure. However, the token remains significantly below its long-term resistance at the MA-200, and overbought indicators like RSI and CCI suggest caution.

What Are the Broader Market Implications for Pudgy Penguins?

Pudgy Penguins is part of the broader meme-driven rally in the crypto market, showing

strong correlation with Bitcoin (0.61)
. This alignment means PENGU benefits from broader market optimism but is also vulnerable to sharp corrections if crypto sentiment shifts.

Derivatives activity has increased
, with open interest surging to $123.55 million, reflecting growing institutional and retail participation. This increased participation may drive liquidity and price discovery but also introduces risks associated with leveraged trading and market volatility.