Pudgy Penguins (PENGU) has emerged as the market’s top gainer, rising 6% in the past 24 hours. The meme coin is currently trading at $0.025. However, the price increase has triggered a wave of selloffs, raising doubts about the sustainability of its recent gains.
Investors Sell Amid PENGU’s Price Rally
PENGU’s spot market experienced significant outflows on Thursday, signaling profit-taking among holders. Data from Coinglass shows that investors offloaded approximately $1.14 million worth of the token.
When spot outflows occur during a price rally, it typically means holders are cashing in on their gains. This trend indicates a lack of long-term confidence in the asset’s upward movement.
Bearish Signals from Technical Indicators
At press time, PENGU’s Chaikin Money Flow (CMF) indicator stands at -0.19 on the daily chart. This negative reading forms a bearish divergence with the token’s rising price, suggesting a potential reversal.
The CMF metric tracks the inflow and outflow of money over a period, revealing buying or selling pressure. A negative CMF during a price rally suggests weak buying interest, increasing the likelihood of a downturn.
PENGU Price Prediction: Will It Drop or Rally?
Currently, PENGU is trading slightly above its all-time low of $0.022. If buying interest weakens further, the token’s price could retest this support level.
However, if demand strengthens, the meme coin might climb toward the $0.030 mark, invalidating the bearish outlook.
