PENGU has fallen 17%! On-chain data reveals that internal related wallets have dumped over 17 million dollars worth of tokens to the exchange in recent months.

Recently, the PENGU Token, which has performed exceptionally well, has encountered a sharp decline, with a weekly drop of up to 17%. On-chain analysts have revealed key findings: an internal Address associated with the project deployment Wallet has been continuously depositing huge amounts of tokens into the exchange, worth over $17 million, raising market concerns about "insider dumping" (insider dump). Although the volume remains high, technical indicators show that short-term momentum is weakening, with the support level looking down at $0.030.

PENGU trend reversal, plummeting 17% within the week The Pudgy Penguins Token PENGU has recently experienced a significant pullback. The latest data shows that the token has fallen 6.5% in the past 24 hours, priced at $0.03533. Looking back over the past week, PENGU has dropped 17%, which stands in stark contrast to its local high of $0.0447 reached on July 27. Although there is still a 133% increase over the past 30 days, the current price of PENGU is still 48% lower than its all-time high of $0.06845 set in December 2024.

Large transfers between associated wallets raise concerns of dumping The data shared by the anonymous on-chain analyst Ai reveals a key trend: Address 8hQvQ...zund8 (confirmed to be associated with the PENGU project deployment wallet) deposited 150 million Tokens, worth approximately 5.64 million USD, into a mainstream CEX on July 30.

On-chain movement: Whale addresses continue to sell off This is only part of a recent large-scale transfer. Since the beginning of July, this Address has cumulatively transferred 485 million PENGU to the exchange, with a total value of approximately 17.67 million USD. Earlier data showed that from July 12 to July 28, over 2 billion Tokens (valued at approximately 66.6 million USD) were transferred from the PENGU deployment Address to major centralized exchanges (CEX). On July 28 alone, the value of the transferred Tokens reached as high as 8.91 million USD. Although some speculate that these transfers may be related to establishing partnerships or increasing liquidity, the timing has raised market concerns about "strategic dumping" (strategic dump).

Volume remains high, but open interest slightly declines Despite concerns about dumping, PENGU's trading activity remains active. Its 24-hour spot trading volume increased by 34%, reaching $943.1 million; the derivatives trading volume rose by 27%, reaching $2.76 billion. However, the open interest (OI) slightly decreased by 1.76%, suggesting that some traders may be reducing their short-term positions.

PENGU Technical Analysis: Key support level under pressure

(PENGU Daily Chart | Source: crypto. news)

• Key Moving Average: PENGU is currently hovering around the 20-day Simple Moving Average (SMA) at approximately 0.0352 USD.
• Bollinger Bands: The price has pulled back from the upper band and is currently closer to the lower support level of $0.0245.
• Relative Strength Index ( RSI ): Earlier this week, it surpassed 73 and entered the overbought zone, now it has fallen back to 57.6.
• Stochastic RSI & MACD: The Stochastic RSI is currently in the low region, and the Moving Average Convergence Divergence ( MACD ) line has crossed below the signal line, both of which are early signals of weakening momentum.
• Long-term trend: The 50-day Exponential Moving Average ( EMA ) is at $0.0257, and the 200-day EMA is at $0.0182, indicating that the long-term upward trend has not been broken unless the current downward trend intensifies.

Key Support and Resistance Levels If PENGU cannot hold the 0.035 USD level, the next key support level is around 0.030 USD. For the short-term market sentiment to turn bullish, the price needs to successfully recover the 0.038 USD level.

Conclusion: The on-chain data of internal associated addresses continuously transferring large amounts to the exchange, combined with the weakening signals of short-term technical indicators, puts significant selling pressure on PENGU. Investors need to closely monitor the key support level of $0.035 and changes in on-chain capital flow, being cautious of potential "internal dumping" risks. Whether market sentiment can recover will depend on whether the price can stabilize quickly and return above $0.038.