The Pudgy Penguins NFT collection and its associated PENGU memecoin are currently navigating a challenging market, marked by significant declines in sales volume and token value. The hype surrounding NFTs has notably waned since its 2021 peak, and this trend is profoundly impacting the once-popular digital collectibles and their ecosystem's native token.
Market Downturn for Pudgy Penguins and PENGU
In the past month, Pudgy Penguins NFT sales volume plummeted by 31.4%, reflecting a broader loss of momentum in the NFT space. Concurrently, the PENGU token, despite offering utility within its ecosystem, has been in a severe downtrend since August, witnessing a staggering 73.5% price reduction from $0.032 to $0.0086. This steep decline surpasses typical volatility even within the memecoin sector, indicating strong bearish sentiment. While some market observers suggest memecoins often experience "second runs," there's no guarantee this will materialize for PENGU given current market conditions.
Technical Outlook and Future Price Targets
On-chain data reveals some PENGU tokens moving off exchanges, typically a sign of accumulation. However, the magnitude of these outflows is not as robust as previous periods, and similar movements in October failed to prevent rapid price depreciation. Technical analysis on the D3 chart confirms a bearish structure break, with PENGU slipping below key support levels like $0.009. The On-Balance Volume (OBV) also shows a steady decline, signaling a lack of buying pressure. Without a significant shift in market dynamics or buying interest, technical indicators suggest PENGU prices are likely to continue their downward trajectory, with potential targets at $0.0054 and even $0.0039 in the coming weeks. Short-term support at $0.00855 remains critical, but its breach could signal further losses.
