PENGU deployer moves 1.5B tokens ($45M) to exchanges, raising dump fears despite holding 9.5B tokens ($299M).
Arkham disclosed that the deployer wallet responsible for Pudgy Penguins (PENGU) transmitted an astonishing 1.5 billion tokens, valued at approximately $45.56 million, to significant centralized exchanges. The potential for a price collapse to follow this extensive movement has sparked a heated debate.
The PENGU Deployer’s actions have caused a stir in the market; is a sell-off imminent?
According to data from Blockchain analytics firm Arkham Intelligence, the Pudgy Penguins deployer recently transferred 1.586 billion PENGU tokens to various centralized exchanges. Despite the bullish sentiment, this has sparked speculation regarding a potential sell-off.
The transfers, which were conducted through numerous Squads Vault addresses between July 11 and today, occur while the deployer continues to possess approximately 9.541 billion PENGU (estimated to be worth nearly $299 million).
Cryptocurrency enthusiasts promptly addressed social media. Several traders suggested that it is time to “tp or believe,” suggesting they could either take profits or remain loyal. Others, on the other hand, warned of a potential drop. The timing is particularly sensitive, as technical indicators display a mixture of signals. PENGU is currently in a state of profound oversoldness but is also experiencing adverse momentum on the charts.
This occurs after the token’s recent upward trajectory. The Pudgy Penguins had previously announced the launch of the franchise’s mobile game, indicating a significant ecosystem expansion. The most recent price movement illustrates the backdrop. Before its consolidation at approximately $0.03, PENGU experienced a substantial increase in value, surpassing $0.034. Trading volume exceeded $1.75 billion, and the market capitalization exceeded $2 billion within 24 hours.
Additionally, the SEC’s recognition of Canary’s application for a prospective PENGU ETF had intensified the current bullish sentiment regarding the token. Investors are concerned that the deployer’s substantial transfer to exchanges may jeopardize this upward trajectory.
PENGU experienced a robust recovery following a market decline in April, soaring eightfold from its lowest point. PENGU is currently ranked alongside renowned coins such as DOGE, SHIB, and PEPE. Supporters are confident that it will eventually surpass the market value of the Shiba Inu.
What is the future of PENGU? Professionals Offer Their Opinions
Numerous analysts have maintained their optimistic outlooks, regardless of the developments concerning PENGU. Honey, a prominent cryptocurrency trader, has observed that PENGU may consolidate before attempting to reach mid-$0.04 levels after doubling in a week.
Muro, a cryptocurrency enthusiast, observes that PENGU’s fundamental principles, including its rapid ecosystem expansion and backing from substantial exchanges, are already surpassing the performance of numerous legacy meme currencies. This suggests that, despite the recent transfer of tokens by the deployer, PENGU’s robust foundation may render such actions irrelevant.
Nevertheless, the deployer’s substantial transfers serve as an additional layer of caution. Short-term volatility may experience a significant increase if substantial quantities are sold. However, the longer-term outlook may remain unaffected if these tokens are intended for strategic movements, partnerships, or liquidity.
