![Pudgy Penguins [Pengu]](https://engamb.b-cdn.net/wp-content/uploads/2025/07/Gladys-59-1024x576.webp)
Key Takeaways
Pudgy Penguins retraced after hitting $0.046, as whales sold off. Retail traders bought the dip, creating mixed sentiment. Future direction hinges on whale behavior and support at $0.032.
After rallying to a 7-month high of $0.046 on the 23rd of July, Pudgy Penguins [PENGU] faced a strong rejection and retraced to a low of $0.0395.
As of this writing, PENGU was trading at $0.0398, marking an 11.03% decline over the past 24 hours. Before this dip, the memecoin had been on an upward trajectory, hiking by 32.55% on weekly charts.
Amid this price dip, whales have turned to selling, potentially to lock in profits or reduce losses.
PENGU whale dumps 73.64M tokens
According to On-Chain Lens, a PENGU whale reentered the market, after a three-month break.
The whale sold 73.64 million PENGU tokens at $0.042, earning $3.13 million and locking in a $2.13 million profit—having originally purchased the tokens for $1 million.
Source: Nansen
Interestingly, this selling is not isolated, as a good number of whales have reduced their holdings. According to Nansen, PENGU whales sold 249 million tokens, while they acquired only 188 million over the past day.
When whales turn to selling, it may signal either strategic repositioning or panic selling to avoid losses and lock in profit.
Derivatives are feeling the same
Unsurprisingly, as the market retraced, activities in the derivatives markets also plummeted.
According to CoinGlass, Derivatives Volume dipped 22.26% to $4.6 billion, while Open Interest dropped by 25% to $553.9 million, at press time.
Source: CoinGlass
When OI and Volume decline in tandem, it reflects declining participation in the futures market and lower capital inflow.
As a result, the memecoin’s Long Short Ratio declined to 0.954, signaling a higher demand for short positions. When demand for shorts rises, it implies that investors are betting on prices to dip further.
Retailers are standing still
Importantly, while whales are actively selling, other market participants, especially small-scale traders, are buying the dip.
According to CoinGlass, the memecoin’s Netflow turned negative for the first time in four days. Pudgy Penguins’ Spot Netflow declined, reaching a low of -$12.85 million, as of writing.
Source: CoinGlass
When Exchange Netflow turns negative, it signals increased accumulation, with buyers outpacing sellers in the spot market.
Can PENGU bulls hold on?
According to AMBCrypto’s analysis, PENGU declined as market sentiment, especially from large holders, turned bearish.
As a result, the upward momentum weakened while the downtrend strengthened, risking a continued decline and further losses.
However, small-scale investors rushed into the market to defend the uptrend by buying the dip. This mismatch in sentiment among key market participants leaves PENGU at a crossroads.
That said, if whales continue selling, PENGU will make losses and decline towards $0.032 support level.
However, if retailers have their way, the memecoin will bounce off its recent low, reclaim $0.046, and target $0.05.
