• PENGU fell 73% in five months, reflecting waning NFT and memecoin market enthusiasm.
• On-chain data shows token outflows and weak buying pressure, signaling continued downtrend.
• Short-term support at $0.00855; further decline possible to $0.0054 and $0.0039 levels.

Pudgy Penguins — PENGU, has left many investors scratching their heads. Over five months, the token has fallen more than 73%, dragging sentiment down across the NFT and memecoin communities. NFT sales volume also declined 31.4% in the past month, highlighting waning enthusiasm for projects that once sparked massive hype. While some hope for a comeback, recent on-chain data and price movements suggest caution may still be necessary.

PENGU’s Steady Downtrend

PENGU started its downward journey in August at $0.032, steadily sliding to $0.0086 at press time. This drawdown stands out even among memecoins, known for volatility. The token holds utility within the Pudgy Penguins ecosystem, but that alone has not prevented the decline. Many casual traders and NFT enthusiasts moved away after the hype of 2021 failed to return.

On-chain metrics show net outflows from exchanges. Holders have been moving tokens into cold storage, reflecting attempts to accumulate rather than sell immediately. However, these outflows have not matched the scale seen in May and June 2025. The declining price indicates that demand is still insufficient to counteract selling pressure.

Crypto Twitter discussions hint at potential comebacks. Some users compared PENGU to other memecoins that experienced secondary rallies. PIPPIN was cited as an example of a token regaining momentum after a long slump. Despite these parallels, no guarantee exists that PENGU will return to previous highs anytime soon. Traders should remain realistic about short-term gains.

Looking Ahead: Potential Price Targets

Short-term support sits at $0.00855, which could act as a temporary floor. If bears push below this level, the token may revisit earlier March and April supports at $0.0054 and $0.0039. Investors and traders should track these levels closely for signals of potential reversals. The overall picture suggests caution. Without renewed buying pressure, PENGU could continue sliding toward lower supports.

While accumulation from long-term holders exists, momentum remains weak. Price action will likely determine whether a recovery is realistic in the near future. For those still holding, watching on-chain activity and chart patterns is essential. Short-term swings may offer trading opportunities, but risk management remains crucial. Market sentiment for NFTs and memecoins can shift quickly, and PENGU is no exception.

Patience and careful analysis will be key for navigating this ongoing slump. In conclusion, PENGU’s 73% drop reflects a mix of fading hype, technical weakness, and cautious holder behavior. Even with potential for a rebound, the current landscape favors careful observation. Investors should stay alert and avoid chasing unrealistic gains while tracking developments in NFT sales and token flows.