PENGU Price Crash: Why Pudgy Penguins Fell 12% Overnight — Risks Ahead for the Meme-Coin

Pudgy Penguins [PENGU], one of the popular meme-coins, has experienced a significant decline in value recently. The crypto market saw a sharp downturn, with PENGU's price dropping 12% overnight on December 1, 2025.

In the wake of this, many traders are questioning the coin's future. Will PENGU's downward trend continue, or is there a potential rebound ahead?

PENGU Faces Strong Resistance and Major Losses

PENGU's price has been consistently under pressure, hitting a well-established resistance wall. This has led to intensified selling and a significant drop in value. After an earlier rally, the price has retreated towards a crucial support zone, trading at $0.0095. The resistance, which had previously triggered a massive 53% drop, has now led to an 8.86% decline in the last 24 hours alone.

The broader memecoin market is also experiencing similar declines, with an average weighted drop of 27% in the last day. Many investors are now wondering whether this is just a short-term pullback or a longer-term bearish trend.

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Key Technical Insights

• Resistance Wall: PENGU has repeatedly struggled at the $0.0095 level, which has acted as a barrier to further price advancement.
   
• Recent Drop: In the past 24 hours, PENGU tanked 12%, making it one of the most significant movers in the memecoin market.
   
• Support Levels: The current support level is around $0.0095, with expectations of further declines if this level fails to hold.
   
• Past Performance: Historically, similar resistance zones have resulted in an average price decline of 31.7%.
   

Momentum Fades: Parabolic SAR and MFI Indicators Show Bearish Sentiment

The indicators reveal a grim outlook for PENGU. The Parabolic SAR and Money Flow Index (MFI) confirm that the bearish momentum is gaining strength. The Parabolic SAR, which helps determine the prevailing trend, has turned bearish, signaling further downward pressure.

Meanwhile, the MFI has moved into the "sell zone," reinforcing the negative sentiment surrounding PENGU. With MFI staying in the bearish region, investors are withdrawing capital, contributing to the price drop.

Key Indicators to Watch

• Parabolic SAR: The dots are now above the price, confirming that the market is in a strong sell-off phase.
• Money Flow Index: Currently reading 34.37, indicating that capital is flowing out of PENGU, and investors are increasingly moving to safer assets.

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Community Sentiment Declines as Capital Outflows Intensify

Investor sentiment has notably soured. Once bullish, with over 90% of investors backing PENGU, the sentiment has since plunged to 72%. This decline in confidence is further illustrated by the large-scale withdrawal of funds. In November, about $6.5 million was pulled from PENGU positions, reinforcing the bearish sentiment.

The overall decline in community interest, coupled with substantial capital outflows, suggests that PENGU might continue its descent unless significant changes occur.

Final Thoughts: What's Next for PENGU?

The future of PENGU remains uncertain as the coin faces significant technical resistance and waning community support. As the asset sits near its critical support level, traders must closely monitor these technical indicators for potential signs of recovery or further decline.

If PENGU fails to bounce back from the current support, it could signal a more prolonged downturn. However, if a breakout occurs, it may present a buying opportunity for those looking to take advantage of a potential rally.

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FAQ

Why did PENGU's price drop 12% overnight?

The drop was primarily caused by a significant resistance wall that led to increased selling pressure.

What does the Parabolic SAR indicate about PENGU?

The Parabolic SAR suggests a bearish market as the dots are positioned above the price, signaling potential further declines.

Is there a chance for PENGU to recover?

Recovery is possible if the price breaks through the resistance and builds momentum above the current support.

What are the next support levels for PENGU?

The next key support level is around $0.0095. A break below this level could signal further declines.

What should investors do now?

Investors should monitor the technical indicators closely. If bearish momentum continues, it might be best to minimize exposure.