The Pudgy Penguins (PENGU) price has experienced a significant decline, dropping 12% to $0.0097, and has been struggling to regain momentum, mirroring the broader weakness observed across other memecoins. Traders reacted to a rejection near the $0.011 mark, leading to a decrease in derivatives volume with $6.5 million in positions being closed out. Despite this recent downturn, PENGU remains a focal point due to several major developments anticipated to influence its trajectory this month.
The upcoming launch of Bitnomial’s new regulated spot exchange is poised to offer institutional visibility, with PENGU being among the highlighted tokens. Concurrently, Bitso's expansion into on-chain products could broaden PENGU's accessibility and user base across Latin America.
PENGU Price Chart Analysis
The four-hour chart illustrates a consistent downtrend that has been in effect since mid-September. Following a rejection near $0.0397 several months ago, the price has continued to slide, characterized by lower highs and lower lows with minimal significant rebounds. The selloff intensified in mid-October and again in late November, pushing the PENGU price into the $0.01 range.
A recent bounce towards $0.0124 offers a temporary respite, but it has not yet altered the overarching trend. Sellers remain active within the $0.011–$0.013 zone, and the chart indicates that every attempt at recovery has been met with renewed selling pressure. Should buyers fail to defend the $0.01 area, the price risks a further decline back towards the $0.008 support zone, where buyers have previously intervened.
Market Indicators Show Mixed Signals
On-chain and technical indicators are presenting a complex picture:
- •The On-Balance Volume (OBV) has been declining for weeks, suggesting that capital is exiting the market rather than entering. Even with the recent uptick, the OBV is far from confirming robust demand.
- •The Commodity Channel Index (CCI) has turned positive after an extended period below zero, a common occurrence during rapid rebounds. However, the PENGU price requires sustained buying pressure to validate this as more than a short-lived bounce.
- •Net long versus net short data reveals a continued imbalance. Long positions have slowed, while short positions remain elevated, indicating that traders are still skeptical about the formation of a sustainable bottom.
Collectively, these signals suggest a market attempting to stabilize but not yet poised for an upward turn.
PENGU Price Short-Term Outlook for December
The direction of the PENGU price in December will largely depend on market action around the $0.01–$0.012 area. If buyers successfully defend this zone and propel the price above $0.013, PENGU could target $0.015 and potentially $0.018 later in the month. These levels have historically served as significant reaction points, and reclaiming them would signify considerable buying strength.
Conversely, if the PENGU price falls below $0.01 again, it could retrace to the $0.008 support level, which has provided a floor during previous declines. A break below $0.008 would suggest a more severe downturn and could postpone any recovery efforts.
Currently, PENGU is not experiencing further declines but lacks significant upward momentum. December will be a crucial month in determining whether the current bounce develops into a sustained uptrend or merely serves as a brief pause in the prevailing downtrend.