PENGU Whales Sell 33% of Tokens But Traders Still Predict a 42% Rally

Despite a significant 33% dump by smart money holders, the PENGU token — linked to the widely popular Pudgy Penguins NFT project — is still flashing bullish signals. The market may seem bearish, but technical traders see a potential rebound of over 42%, setting the stage for a surprise rally if support levels hold.

Whales Exit: Sigil Fund Dumps 52 Million PENGU Tokens

According to on-chain data, major investors — particularly Sigil Fund — have offloaded large amounts of PENGU, contributing to a noticeable dip in token value. The fund sold a staggering 52 million tokens, helping push the price down nearly 50% from recent highs.

This whale exodus mirrors broader sentiment among early spot and derivatives traders who appear to be taking profits post-airdrop and Binance listing hype.

“Smart money is taking a breather, but the technical setup hasn’t collapsed yet,” noted crypto analyst @ChartPengu.

PENGU Price Snapshot

As of May 7, 2025 — Source: TradingView

Why Traders Are Still Eyeing a 42% Rally

Despite the whale sell-off, technical charts suggest the pain might be short-lived. The token is currently trading within a bullish triangle pattern, often a precursor to a strong upward breakout.

Analysts point to the $0.010559 support level as a crucial zone. If this level holds, price momentum could flip bullish, with Fibonacci retracement levels pointing toward a target zone around $0.01596, implying a 42% upside from current prices.

“It’s a classic shakeout. PENGU is coiling up for its next leg,” said trader CryptoJedi on X (formerly Twitter).

What’s Driving the Mixed Sentiment?

1. Negative:

   • Whale exits create FUD (fear, uncertainty, doubt)

   • Price halved post-launch hype

   • Retail investors left confused by sudden sell-off

2. Positive:

   • Strong technical formation supports reversal

   • Growing ecosystem under the Pudgy Penguins brand

   • Binance listing offers ongoing liquidity

PENGU is not just another meme token. It is a tokenized extension of the Pudgy Penguins brand, which has built a robust presence in NFTs and Web3 gaming. This ecosystem backing provides stronger fundamentals compared to typical meme tokens.

Analyst Perspectives: Bullish vs Bearish Case

Bullish Case:

• Support holds at $0.010559

• Breakout from bullish triangle triggers a 42% rally

• Continued NFT traction from Pudgy Penguins boosts long-term adoption

Bearish Case:

• Further whale exits break support

• Price tumbles below $0.0100

• Retail confidence erodes without a major news catalyst

Whale Exit or Strategic Reset?

The 33% sell-off by smart money, led by Sigil Fund, isn’t necessarily panic-driven. Analysts suggest it could be a strategic profit-taking move post-airdrop. With PENGU still maintaining strong community interest and exchange listings, the exit may simply reset short-term momentum while paving the way for retail-driven support near the critical $0.010559 level.

Bullish Triangle: Traders Spot a Technical Lifeline

Despite market anxiety, PENGU is forming a bullish triangle, a pattern often preceding upward breakouts. If support at $0.010559 holds, the token could surge by over 42%, reaching approximately $0.01596. This technical setup is drawing attention from traders who see this structure as a lifeline amid broader volatility in the meme coin and NFT token sectors.

What to Watch Next

• Will support at $0.010559 hold?

• Is the sell-off over or are more whales planning exits?

• Will Pudgy Penguins announce a new utility or staking mechanism?

With the market currently teetering on a critical support level, the next few days will be pivotal in deciding whether PENGU becomes this cycle’s comeback coin or fades into meme-tokens obscurity.

FAQs

Why did PENGU’s price drop?

Large investors, including the Sigil Fund, sold millions of tokens post-airdrop and Binance listing, halving the price from recent highs.

What is the key support level for PENGU?

$0.010559 is a strong technical support. If it holds, a rally up to $0.01596 is possible — a 42% increase from current levels.

What is the potential upside if PENGU rebounds?

Traders expect up to a 42.44% rally based on bullish triangle formations, pending that support remains intact.

Glossary

Whale: A large investor or entity that holds and trades substantial quantities of a cryptocurrency.

Bullish Triangle: A chart pattern indicating consolidation before a potential breakout to the upside.

Support Level: A price point where buyers are expected to enter, preventing further decline.

FUD: Fear, Uncertainty, and Doubt — negative market sentiment usually caused by news or large sell-offs.

Sources:

AMBCrypto

CoinmarketCap, PENGU Price

TradingView – PENGU Technical Analysis

The Cryptonomist

Binance Listing – PENGU Tokens Announcement