Pudgy Penguins’ token and NFT market showing fatigue as technicals flash warning signs Pudgy Penguins’ NFT and token markets have cooled sharply, and both on-chain and chart-based indicators suggest more pain could be ahead unless buying pressure returns. Sales and token performance - NFT sales activity has slowed: Pudgy Penguins collection volume fell 31.4% over the past month, according to NFT Price Floor. - The project’s native token, PENGU — often treated like a memecoin despite having ecosystem utility — has been in a steady downtrend since August. Back then PENGU traded around $0.032; by press time it was roughly $0.0086, a roughly 73.5% drawdown in about five months — a heavy loss even by memecoin standards. On-chain flows: accumulation but not enough - Glassnode on-chain metrics show net outflows of PENGU from exchanges, a sign that holders are withdrawing tokens (likely into cold storage) rather than selling on-platform. That pattern usually signals accumulation. - However, the magnitude of these outflows is weaker than the strong exchange removals seen in May–June 2025, and October’s outflows did little to arrest the subsequent price decline. Technical picture: bearish bias - Longer-term charts show a bearish structural break on December 15, when PENGU slipped below $0.0099. The previously important $0.009 support — a key level since June — has been breached. - The on-balance volume (OBV) is trending down, suggesting little sustained buying interest. With no clear “fightback” from buyers, the path of least resistance is lower. - Short-term: $0.00855 is the immediate support to watch. If that level fails, it could flip to resistance on a pullback and offer a shorting opportunity. - Lower-support targets from earlier in the year sit at approximately $0.0054 (March) and $0.0039 (April), both plausible if selling pressure continues. Can PENGU turn around? - Crypto Twitter remains optimistic that memecoins can get surprise second runs — proponents point to tokens like Pippin (PIPPIN) as examples. Still, history is no guarantee: technicals and weak market structure mean a run back to all-time highs in the coming weeks is far from certain. Bottom line Pudgy Penguins faces a strained market: dwindling NFT demand, a steep multi-month token drawdown, muted exchange outflows, and a broken technical structure. Traders and holders should monitor on-chain flows, OBV and the $0.00855 support for short-term cues — keeping in mind that downside targets near $0.0054 and $0.0039 remain in play if bearish momentum persists. Sources: NFT Price Floor, Glassnode, TradingView. Note: This article is informational and not financial advice. Read more AI-generated news on: undefined/news

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