The newly launched PENGU token associated with the Pudgy Penguins NFT project continues to fall, plunging another 33% in the past 24 hours. This sharp drop comes on the heels of a post-airdrop price crash that saw the token lose more than 50% of its value.
Readings on the token’s price chart confirm the ongoing sell-off, putting it at risk of further depreciation.
Penguin sell-off causes share price to drop more than 50%
After the airdrop on December 17, PENGU’s price plummeted 57%, falling from its launch price of $0.068 to $0.043 amid an intensified sell-off. The token’s market cap also shrunk significantly, sliding from $4.32 billion to $3.07 billion, BeInCrypto reported.
The decline has intensified further over the past 24 hours, with PENGU plunging another 33% to trade at $0.030 at press time, cementing its position as the market’s biggest loser.
An assessment of its performance on the hourly chart reflects the ongoing sell-off. For example, PENGU’s relative strength index ( RSI ) is below the 50 neutral line and in a downtrend at 42.18.
The RSI indicator measures overbought and oversold market conditions for an asset, with values ranging from 0 to 100. Values above 70 indicate that the asset is overbought and due for a correction, while values below 30 indicate that the asset is oversold and could be due for a rebound.
PENGU’s RSI reading of 42.18 shows that it is in the lower range of the neutral zone, indicating bearishness or weakening momentum, but not yet oversold. This reflects that the current selling pressure from market participants is greater than the buying pressure.
Furthermore, the negative Chaikin Money Flow (CMF) for the token confirms this bearish outlook. At press time, the figure stands at -0.23.
The CMF indicator measures the strength of buying and selling pressure by analyzing the relationship between price and volume over a specific period. As with PENGU, when an asset's CMF is negative, selling pressure is dominant, indicating that traders are selling the asset rather than accumulating it, so there is distribution.
PENGU Price Prediction: Will it Hold Support or Drop to New Lows?
PENGU is currently hovering above $0.026, which is the lowest price the token has seen since its launch. If its holders continue to sell the airdropped tokens, its price could fall to this support level. If it fails to hold, PENGU’s price could continue its decline and hit new lows.
Penguin price analysis.
However, if the sentiment turns from negative to positive, the altcoin could initiate an uptrend and climb to $0.37, invalidating the above-mentioned bearish outlook.
