The newly launched PENGU token, associated with the Pudgy Penguins NFT project, has continued its downward spiral, plummeting by an additional 33% in the past 24 hours. This significant decline follows an initial post-airdrop price crash where the token shed over 50% of its value.
Readings from the token’s price chart confirm the relentless selloffs, putting it at risk of further devaluation.
Pengu Selloffs Result in Over 50% Decline
After its airdrop on December 17, PENGU’s price plunged 57%, dropping from its launch value of $0.068 to $0.043 amid heightened selloffs. BeInCrypto reported that the token’s market capitalization also shrunk significantly, sliding from $4.32 billion to $3.07 billion.
This decline has intensified over the past 24 hours, with PENGU plummeting another 33% to trade at $0.030 at press time, solidifying its position as the market’s biggest loser.
An assessment of its performance on an hourly chart reflects the persistent selloff. For example, PENGU’s Relative Strength Index (RSI) is below the 50 neutral line and in a downward trend at 42.18.
The RSI indicator measures an asset’s overbought and oversold market conditions, with its values ranging between 0 and 100. Values above 70 indicate that the asset is overbought and due for a correction, while values below 30 suggest that the asset is oversold and may witness a rebound.
PENGU’s RSI readings of 42.18 indicate that it is in the lower range of the neutral zone, suggesting a bearish or weakening momentum but not yet oversold. This reflects that the current selling pressure outweighs the buying pressure among market participants.
Further, the token’s negative Chaikin Money Flow (CMF) confirms this bearish outlook. At press time, it sits at -0.23.
The CMF indicator measures the strength of buying and selling pressure by analyzing the relationship between price and volume over a specific period. As with PENGU, when an asset’s CMF is negative, selling pressure dominates, suggesting distribution as traders are offloading the asset rather than accumulating it.
PENGU Price Prediction: Will It Hold Support or Slide to New Lows?
PENGU currently hovers above the $0.026 price level, representing its lowest price point since the token launched. If its holders continue to sell their airdropped tokens, its price may fall to this support level. Should it fail to hold, PENGU’s price may extend its decline to new lows.
However, if market sentiment shifts from negative to positive, the altcoin may initiate an uptrend and climb toward $0.37, invalidating the above bearish outlook.
Disclaimer
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