PENGU Token Teeters on the Brink—Here’s Why a 40% Crash May Be Imminent

The memecoin darling’s chart is flashing red—overheated rallies, weak hands, and a liquidity pool thinner than your average crypto influencer’s patience. Here’s how the dominoes could fall.

Technical breakdown: PENGU’s parabolic run stalled at resistance levels that even Elon’s tweets couldn’t punch through. Now, derivatives traders are piling into puts like it’s 2021 all over again.

Liquidity crunch: The top 5 wallets control 62% of supply—a classic ’whale games’ setup where one sell order could trigger stop-loss cascades. CEX order books show more gaps than a DeFi project’s audit report.

Sentiment shift: Social volume peaked 72 hours ago (back when ’wen lambo’ posts outnumbered FUD). Now? The usual suspects are rotating into the next shiny object—probably some AI-powered dog token.

Memo to degens: That ’buy the dip’ strategy works until it doesn’t. Just ask the guys still bag-holding Terra Classic.

PENGU likely to see a deeper retracement

Source: PENGU/USDT on TradingView

The 1-day chart revealed that the Pudgy Penguins token smashed past local resistance levels (orange) in the second half of April. The trading volume witnessed an uptick, legitimizing the rally.

After hitting a high of $0.0141, PENGU bulls were rebuffed. The Fibonacci retracement levels showed that the price could descend further. The 61.8% and 78.6% retracement levels at $0.0082 and $0.0066 appeared to be the key support levels that bulls must defend.

They would also offer a good buying opportunity upon a retest. The OBV has been trending higher over the past month, breaching the mid-March highs. It signified a hike in demand for PENGU. The RSI seemed to be falling from overbought territory as the price retraced too, indicating a reset period.

Source: Coinglass

The 1-month liquidation heatmap revealed that there was a buildup of liquidation levels at $0.012 and $0.00966. The $0.0083-level might be another attractive magnetic zone, and it also lined up well with the 61.8% retracement level.

The evidence at hand showed that PENGU could see further downside, before resuming its rally. As a relatively small-cap coin, volatility is to be expected. If the token can see a bullish reaction at $0.0083, the bulls could target the $0.0142-$0.0151 region next.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion