July 30, 2025
5 min read
@cryptonews
PENGU token falls 15% after Pudgy Penguins insiders transfer .6M in tokens, raising fears of further sell-offs amid mixed market signals.
PENGU Price Drops 15% After $5.6M Insider Token Sell Sparks Market Concerns
The price of PENGU, the native token of the Pudgy Penguins ecosystem, dropped 15% following a significant transfer of 150 million PENGU tokens to Binance by a wallet linked to the project’s insiders. This transfer was valued at approximately $5.64 million at the time. On-chain data reveals that the address believed to be controlled by Pudgy Penguins team members has been actively moving large amounts of tokens to centralized exchanges. This particular wallet initially received 1.35 billion PENGU tokens from the project’s deployment wallet in December 2024. Since July, it has transferred a total of 485 million PENGU tokens to exchanges, worth an estimated $17.67 million at an average price of $0.03642.Rising Concerns Over Insider Token Dumps
Blockchain analytics platform Arkham Intelligence reported that the PENGU deployer wallet sent 1.586 billion tokens (worth $45.56 million) to major centralized exchanges between July 11 and July 29. These transfers were routed through multiple Squads Vault addresses, raising alarm bells within the community. Despite the large volume of tokens moved, Pudgy Penguins has not officially commented on the intent behind these transactions. The deployer wallet still holds 9.541 billion PENGU tokens, currently valued close to $299 million, which has intensified fears of continued selling pressure. Market analysts warn that such large, unannounced transfers from project-linked wallets often indicate planned liquidations. This creates uncertainty, especially for retail traders, and contributes to the token’s bearish momentum.Market Performance and Technical Outlook
PENGU’s price has struggled to maintain stability, falling 14.7% over the past week with a 5% drop in the last 24 hours, bringing the price to around $0.0355. This decline follows a strong rally in late June when the token surged over 230%, driven by retail interest and meme coin hype. Attempts to retest resistance levels between $0.0399 and $0.0402 have failed, indicating strong sell pressure. Technical indicators show PENGU trading in deeply oversold territory, but momentum remains bearish, creating a mixed and uncertain outlook for short-term holders. Crypto trader PaulXBT highlighted a 20% pullback from resistance, aligning with a demand zone near $0.032, describing the structure as "still bullish" if support holds. Clearing resistance between $0.037 and $0.040 could open the door for a breakout toward $0.060, while a drop below $0.028 would weaken the bullish case. Trader MoonWizzy noted the 4-hour Relative Strength Index (RSI) is nearing oversold territory at 33, with a bullish divergence forming, suggesting a potentially strong rebound ahead.Pudgy Penguins Expands Ecosystem Amid Token Volatility
Built on Solana and leveraging Abstract blockchain tools, Pudgy Penguins continues to grow its ecosystem through gaming, partnerships, and token utility developments. The $PENGU token, with a total supply of 88.8 billion, is used for governance, staking, in-game features, and community rewards. Since July, whale wallets have accumulated about $200 million worth of PENGU, signaling growing institutional interest. Market enthusiasm has also been fueled by speculation around a potential "PENGU ETF," which has attracted the attention of the SEC. The token is now listed on more than 130 exchanges and has reached over 500 million users globally. To support decentralization, the team is collaborating with multiple custody providers. Pudgy Penguins has also made notable brand moves, including a NASCAR sponsorship, a partnership with Lufthansa’s Miles & More loyalty program, and participation in San Diego Comic-Con. Additionally, its Web3 game "Pengu Clash" launched on Telegram via the TON network, with expansion efforts underway in Asia.Outlook and Community Sentiment
PENGU has overtaken Dogecoin in trading volume on South Korea’s Upbit exchange, reflecting rising retail interest. However, the recent insider token movements and price correction have made investors cautious. Support levels to watch are around $0.033 to $0.035, with deeper support near $0.028. Resistance is expected at $0.040 and $0.050. Macro uncertainties, including upcoming Federal Open Market Committee (FOMC) meetings, add to the market’s unpredictability. Traders are closely monitoring volume and RSI strength for confirmation of a rebound or further declines.Source: Cryptonews