Pudgy Penguins (PENGU), a once-popular NFT project, is facing significant turbulence as its market price drops 7.78% in the last 24 hours, bringing its value to $0.03321. The token’s market cap has fallen to $2.07 billion, with increasing concerns over the project’s future, driven largely by a massive sell-off from early investors and project-associated wallets.
Early Investors Liquidate Large Amounts of Tokens
A key factor in the price decline is the sale of approximately 176 million PENGU tokens, representing about 20% of total holdings by early investors. This liquidation, valued at $9.287 million, has added significant downward pressure on the token. The sell-off follows a large transfer of 888 million tokens to an address starting with HoTdB, just before an airdrop event, raising speculation that this move was part of a strategic exit before further market volatility.
Market Sentiment Shifts to Bearish
Despite a 13.02% increase in 24-hour trading volume to $407.4 million, the sentiment around PENGU remains overwhelmingly bearish, with 77% of the CoinMarketCap community expressing pessimism about the token’s future. This negative outlook reflects a lack of confidence, as many investors fear further price declines amid the concentrated selling from major holders.
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What’s Next for Pudgy Penguins?
The future of Pudgy Penguins is now in question. While the project still enjoys a loyal community, the recent sell-off and bearish sentiment have left investors uncertain. The next few days will be critical as traders watch for any signs of market stabilization or additional sell-offs. If the token cannot regain investor confidence, it could continue to struggle in the short term. However, if Pudgy Penguins can address the market concerns and deliver on future promises, a rebound remains possible.
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