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PENGU price prediction – Reasons why its latest drop could be short-lived
The Pudgy Penguins (PENGU) cryptocurrency has been experiencing a downward trend in recent days, with its price dropping by over 11% on the charts. This sudden decline comes after the token reached an all-time high of $0.048. However, market analysts believe that this drop could be short-lived, citing several reasons.
Firstly, it is crucial to note that PENGU’s latest dip was largely attributed to the impact of recent macroeconomic data and the subsequent panic sell-off in the crypto market. This sudden decline comes after insider wallets began selling their tokens from mid-July, resulting in a massive $66 million worth of tokens being moved to exchanges for profit-taking.
The CPI data that was released earlier this week served as a catalyst for PENGU’s recent drop, but its release also sparked signs of reversal. The market appears to be consolidating and the dominance of sellers may not last long.
Furthermore, the token has been observed ranging around its highs in the past few days, which is historically associated with bullish continuation on the charts. This implies that a bounce-back could occur at any moment.
It’s worth mentioning that despite this drop, PENGU still holds an impressive market capitalization that surpasses all Solana memecoins. The token has managed to solidify its position as a strong contender in the cryptocurrency space.
The recent price decline has also led to an increase in buying pressure and a decrease in selling volume. A sharp increase in short sellers can also lead to a reversal, especially considering the funding rates on major exchanges have turned positive, indicating that buyers are making their way back into the market.
In conclusion, we believe that PENGU’s latest drop could be short-lived. The data suggests that the token is likely to experience another bounce-back as the market continues to consolidate and seller dominance fades away.
Source: ambcrypto.com
