Pudgy Penguins Price Faces Drop After Deployer Sends Tokens to CEXs

The Pudgy Penguins price has taken a sharp dip after an intense rally that pushed the token to new highs. Blockchain tracker Arkham reports that the project’s deployer wallet has transferred 1.586 billion PENGU tokens worth around $45.56 million to top centralized exchanges.

Source: Wu Blockchain

These transactions were made using multiple Squads Vault addresses between July 11 and today. With this movement happening while PENGU hit its peak, many investors suspect a wave of profit-taking.

Recent Developments Boosting Ecosystem Hype

Before the price drop, Pudgy Penguins got a lot of attention after announcing their new game and teaming up with Suplay in China. These moves showed CEO Luca Netz’s plan to grow the brand worldwide and got people really excited.

Deployer Still Holds Billions Worth of PENGU

Despite the large token transfers, the deployer wallet still holds 9.541 billion PENGU, valued at approximately $299 million.

With such a massive amount still in control, fears of additional selling are valid. If more tokens are moved to exchanges, the Pudgy Penguins price could fall further.

Much like the Bitcoin whale's well-timed moves, this PENGU whale may be strategically unloading while public attention is high. Traders are now closely watching every wallet movement.

Price Pullback Hints at Profit-Taking

After a big weekly surge of 60% , in response to game launch and partnership news, the Pudgy Penguins price has sharply corrected.

Crypto experts consider this is likely due to profit taking after the hype-driven surge. The coin is currently trading at $0.03015 with a decrease of 10% in the last 24 hours.

Source: CoinMarketCap

What’s Next for Pudgy Penguins Price?

PENGU has crashed about 10% within a day, which matches the estimated pullback after it became overbought.

• Its RSI is extremely high at 82.6, and the price moved above the upper Bollinger Band before falling, something that usually leads to a short-term dip.

• The MACD also shows that momentum is slowing down.

• Based on this, the token is likely nearing the end of its correction.

• In the next day or two, PENGU may bottom out around $0.0287 before possibly recovering to around $0.0308 if buying interest returns.

Whale Moves Mirrors Bitcoin’s OG Whale Sell-Off Strategy

This activity is strikingly similar to what was seen recently with Bitcoin. On July 15, LookonChain revealed that a legendary Bitcoin OG whale moved 40,009 BTC (worth $4.68 billion) to Galaxy Digital.

Today on July 17, that same whale sent another 40,192 BTC (valued at $4.77 billion) to a new wallet address. Both actions came as Bitcoin was trading at its all time high.

The same pattern now seems to be playing out with PENGU. As the Pudgy Penguins price reached new highs, its top wallet began distributing tokens to exchanges.

Investors are worried that the deployer may follow the Bitcoin whale’s footsteps and continue selling, adding downward pressure to the token.

Conclusion

The Pudgy Penguins price is currently reacting to a mash-up of hype, in-real-life growth and potential selling pressure. Given, the brand continues to grow through games and the formation of new alliances, with massive token transfers, the profit-taking is only bound to increase.

It remains to be seen whether the value will stabilize or fall even further based on the actions and effects that the deployer wallet will take and the effects other actors in the market would place on it.