PENGU is hovering near a key support zone, with extreme short positioning and smart-money selling setting the stage for a potentially explosive next move.
After days of relentless pressure, PENGU finds itself at a critical crossroads where sentiment, structure, and smart money behavior all collide. Market watchers are split between expecting one final drop or a breakout that could catch bears off guard.
Funding Rates Reflect Heavy Short Bias
On-chain and derivatives data show a striking imbalance. PENGU’s funding rate has plunged to nearly -40% APR, signaling extreme short positioning across exchanges. This kind of skew often appears when traders aggressively bet against price continuation, creating the potential for short squeezes if market direction reverses.
PENGU funding rate plunges to -40% APR, signaling extreme short bias and potential for a sharp short squeeze. Source: CRG via X
While it indicates heavy pessimism in the near term, such deeply negative readings have historically preceded sharp relief rallies. CRG highlights that if open interest remains elevated while Pudgy Penguins’ price stabilizes around $0.023, conditions could quickly turn volatile as bears begin to unwind.
PENGU’s Resistance at $0.026 Key Towards Recovery
The recent pattern continues to mature within a contracting wedge structure, with PENGU holding above its near-term base at $0.0225 to $0.0230. A breakout and sustained close above $0.026 would confirm bullish momentum, opening the path towards $0.030 to $0.035, aligning with the next liquidity pocket visible on the Pudgy Penguins’ chart.
Pudgy Penguins trades within a tightening wedge, with a breakout above $0.026 likely unlocking upside targets towards $0.030–$0.035. Source: Ali Martinez via X
This wedge has shown multiple rejection points near the descending resistance line, but compression typically ends in expansion. Holding current levels while testing upper resistance signals that the market may be preparing for a breakout attempt if sentiment improves.
Smart Money Flow Signals Distribution Phase
On-chain flow data from Stalkchain highlights that Pudgy Penguins was the most sold token once again among smart money wallets in the past 24 hours. Such behavior typically reflects active profit-taking or hedging, often leading to short-term downside pressure or consolidation.
PENGU sees heavy selling from smart money wallets, signaling a short-term distribution phase and cooling momentum. Source: Stalkchain via X
While these moves don’t necessarily mean long-term weakness, they do indicate that the market’s top holders are reducing exposure for now. Combined with already negative funding, this reinforces a cooling phase that could extend until fresh accumulation resumes at lower levels.
Downside Risk Still Present
BRUH recent chart structure updates reveal that PENGU Pudgy Penguins continues to trade under descending resistance while forming lower highs. Price rejection near $0.026 and continued closes below $0.024 highlight that bears remain in control. The next visible support stands around $0.020 to $0.018, marking the region where liquidity may build again.
PENGU remains capped under descending resistance, with bears eyeing the $0.020–$0.018 support zone for potential liquidity buildup. Source: BRUH via X
If this Pudgy Penguins channel holds, participants may see one more corrective sweep before any major rebound attempt. Maintaining this structural integrity suggests the pair could still test deeper zones before confirming a trend reversal.
PENGU Price Likely to Drop Further?
According to Brave New Coin data, PENGU trades around $0.0234, marking a 4% daily decline with volume exceeding $250 million. The chart remains in a downward slope, reflecting weak follow-through from buyers and a steady loss of momentum.
Pudgy Penguins’ current price is $0.02340, down -4.02% in the last 24 hours. Source: Brave New Coin
Unless $0.026 is reclaimed soon, short-term bias remains tilted toward $0.022 and potentially $0.018 next. The price pattern still mirrors a controlled descent rather than panic selling, suggesting that the next reaction zone may form slightly lower before volatility re-emerges.
Final Thoughts
PENGU’s near-term structure remains technically cautious but fundamentally poised for volatility. The combination of aggressive short funding, smart-money distribution, and gradual structural compression suggests that the market is in a delicate equilibrium, one that could break sharply in either direction.
If Pudgy Penguins’ price sustains above $0.022, participants could see an eventual push towards $0.030 to $0.035, validating a short-term recovery setup. However, sustained selling from large holders and persistent negative sentiment may prolong consolidation near the lower band. For now, the PENGU price prediction leans neutral-to-cautious, with liquidity zones near $0.018 to $0.022 acting as key areas to watch.