Will Pudgy Penguins (PENGU) Hit $0.10? Experts Break Down the Price Potential

Pengu (PENGU) has been gaining steam lately. At one point, it was one of the best-performing altcoins in the market. But just as quickly, it lost steam and became one of the worst performers in 24 hours.

The price of Pudgy Penguins (PENGU) has been a hot topic of discussion lately, especially as the token experienced a remarkable 230% rally in a brief period. However, this surge was short-lived, and the token faced a swift 70% correction, ultimately returning it to the pre-rally levels.

While this dramatic price swing might seem surprising, crypto expert Gerhard, who boasts over 136,000 subscribers on YouTube, delves deeper into the factors that might be influencing this volatility.

What’s Driving Pudgy Penguins Price Today?

In a recent video, Gerhard shared his insights into the recent activity surrounding PENGU. He highlighted how the token shot up to become the second-best performer among the top 100 cryptos. However, within a day, it plummeted to become one of the worst performers, showcasing the rapid shifts in momentum within the crypto market.

This extreme volatility isn’t necessarily about fundamentals or long-term value, which is often emphasized in discussions of Bitcoin and other major cryptos. Instead, it can be attributed to leveraged trading, which is prevalent in the futures market.

Gerhard further explained that when traders place large long positions, the price tends to pump quickly. Conversely, when momentum fades or funding rates become negative, the price can crash just as rapidly.

Interestingly, even during the 230% rally, the number of holders didn’t increase significantly. This suggests that the price jump wasn’t being driven by genuine retail interest, but rather it was a product of the trading game, with new highs being hit quickly and decisively.

Where Is Pudgy Penguins Token Launching?

Despite having decent liquidity on the Solana chain, with millions in pool size for the main token and major LP tokens, most of the action is happening on centralized exchanges.

PUDGY PENGUINS TOKEN

This is where the token launched and where the majority of the volume is concentrated.

For instance, on Binance alone, PENGU saw a massive $77 million in 24-hour futures trading volume. This level of activity generates a lot of leverage, which isn’t the kind of trading that reflects steady growth or long-term conviction.

It’s short-term bets, in and out, with little to no interest in holding for the long haul.

Moreover, meme coins typically live and die by attention.

Recently, there’s been a lot of chatter about Pudgy Penguins across the web.

Specifically, search traffic for “Pudgy Penguins” on Google has surged, while mentions on X (formerly Twitter) have also spiked. This attention is drawing in first-time buyers and piquing the interest of the broader crypto community.

However, even with the increased attention, the number of wallet holders has barely changed. Wallets holding $1,000, $10,000, or even $100,000 worth of PENGU have stayed about the same, which is a big red flag if you’re hoping for strong, organic growth.

Gerhard also noted that first-time buyer activity peaked on April 21, yet the price didn’t really spike from there, which could be a sign of manipulation or just a lack of fresh capital to push things higher.

On-Chain Tracking and Insider Activity

One of the more interesting parts of the video was about how they are tracking wallets.

Gerhard and his team are monitoring around 600 influencer wallets. They use NFT activity, deposit addresses, and token patterns to figure out who’s buying what before it becomes a trending token.

He shared how insiders often get in early, hype up a project on social media, then their followers buy and the price goes up. It’s the same old pump-and-dump scheme, just dressed up in a new outfit.

The crypto influencer concluded by saying that there are two ways to approach this market: buy random tokens and hope, or follow where the insiders are putting their money.

Either way, for PENGU price, all eyes are now on whether it can hold the gains or if this was just another short-lived meme coin rally.

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This article is for informational purposes only and does not constitute a part of any investment advice.

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