**Why Did PENGU’s Price Crash Today?**
Pudgy Penguins (PENGU) memecoin experienced a significant price drop of over 10% today, primarily driven by leveraged shorts piling in near the $0.0157 level. This aggressive shorting pushed the price lower amidst broader market weakness following Bitcoin’s dominance surge since the October 10 crash.
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**What Are Pundgy Penguin Traders Watching Next?**
Top wallets currently hold approximately 97% of PENGU, suggesting a potential rebound if the price can reclaim support around $0.0177 soon. This area is critical for confirming any recovery and shifting the market sentiment back to bullish.
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**PENGU Falls 10% but Flashes a ‘Buy’ Signal**
Over the past 24 hours, PENGU’s price slid more than 10%, accumulating nearly a 22% loss since the beginning of November. Despite the bearish price action, the Cumulative Volume Delta (CVD) indicates some recovery—improving from -$326 million last week to -$64 million currently—implying sellers might be losing momentum.
Additionally, the MACD recently turned faintly green, signaling that bulls are becoming alert to a monthly discount that’s less than a week old. Supporting this positive outlook, Ali Charts’ analysis highlights a buy signal from the TD Sequential indicator around the $0.015 zone, which is roughly two-thirds down from the late August highs of $0.045.
For the bullish momentum to gain traction, PENGU must flip the $0.01772 to $0.01900 zone from resistance to support. While these indicators offer some hope, the overall chart structure remains bearish on both daily and hourly timeframes at the time of writing.
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**Top Traders Stay Long Despite Volume Spike**
Data from Nansen AI reveals that 24-hour trading volume surged to $241.7 million—nearly 48 times the daily average. This volume spike coincided with the price drop, signaling heavy distribution activity.
Nevertheless, the top-performing PnL traders are holding firm, maintaining 97% of their positions. Notably, one wallet accumulated an additional $75,000 worth of PENGU, backing a short-term bullish bias. Still, despite these signs of accumulation, the broader structure stays bearish on both hourly and daily charts.
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**Leverage and Shorts Push Prices Lower**
Aggregate exchange data shows cumulative shorts at $7.68 million, significantly outnumbering longs at $3.67 million. The most intense leveraged short positions—ranging from 25x to 50x—clustered around the $0.01579 price level.
Binance alone accounts for $3.35 million in shorts compared to $1.77 million in longs. This imbalance confirms that the recent downward pressure was primarily triggered by leveraged derivatives traders, rather than spot market selling.
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**Conclusion**
While derivatives-driven shorting led to the recent price drop, the strong holding by whales and emerging buy signals point to bottom-seeking behavior rather than a complete market recovery. If spot demand increases and PENGU can reclaim the $0.0177 support level, this accumulation by top traders may limit further downside and set the stage for a potential rebound.
https://bitcoinethereumnews.com/tech/pengus-22-fall-what-happens-now-that-the-buy-signal-is-live/