Key Takeaways:
The Pudgy Penguins (PENGU) token jumped over 17% in the last 24 hours to a three-month high of $0.01035, as a rally in the broader non-fungible token market gathered pace. The move, however, is met with significant bearish pressure, as traders built up $4.91 million in short positions, creating a volatile setup for the token.
The rally was underpinned by a resurgence in the Pudgy Penguins NFT collection, which saw its floor price climb above 5 ETH with over 20% in weekly gains, according to market data. “The NFT rally is primarily attributed to surging cryptocurrency prices, with Bitcoin (BTC) recently touching $80,000 and Ethereum (ETH) reaching $2,400,” one analyst noted, highlighting the positive sentiment spilling over from market leaders. The momentum was also seen in other top-tier collections like the Bored Ape Yacht Club (BAYC), which saw its floor price spike 81% over the last 30 days.
Despite the bullish price action, on-chain data reveals conflicting signals. The rally’s timing coincided with a 703 million PENGU token unlock on April 17, which, according to DNTV Research, were dispersed into at least 19 separate wallets—a pattern often preceding sell-offs. This liquidity event was met with a 150% surge in 24-hour trading volume to $407.6 million, which likely helped the market absorb the new supply. Adding to the pressure, another 703.92 million tokens are scheduled to be unlocked on May 17, according to DropsTab data.
This leaves PENGU caught between bullish narratives and bearish technicals. While brand expansion, including a Visa-linked payment initiative and retail exposure, supports a long-term growth story, the immediate outlook is uncertain. The token faces critical resistance at the $0.010 level. A failure to hold support around $0.008375 could see a pullback, especially as the Relative Strength Index (RSI) hovers above 70, signaling overbought conditions. The May 17 unlock now stands as the next key event that will test whether demand can continue to absorb significant supply pressure.
This article is for informational purposes only and does not constitute investment advice.
