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Pudgy Penguins token is showing signs of bottoming out after crashing nearly 90% from its all-time high.
Pudgy Penguins (PENGU) price rose to $0.011 on Friday, up by almost 20% from its all-time low.
The token’s rebound comes as third-party data shows a sharp decline in Pudgy Penguins sales due to waning demand. According to CryptoSlam, sales have plummeted 55% in the past seven days to $5.1 million. The number of transactions fell 45% to 186, while the number of buyers dropped to just 97.
Sales have also declined over the past 30 days, falling 57% to $44 million. During the same period, transactions and buyers decreased by 29% and 38%, respectively.
Additional data indicates that monthly trading volume has also dropped. After surging to $114 million in December, volume declined to $43 million in January and currently stands at $12.9 million this month.
PENGU’s price action mirrors that of ApeCoin (APE), the token created by Yuga Labs, the team behind Bored Ape Yacht Club. APE initially surged to $27 following its 2022 airdrop but has since crashed by more than 95%.
PENGU price may have bottomed
There are signs that PENGU may have reached a bottom. Its futures open interest has dropped to $80 million from an all-time high of over $266 million. Historically, strong rebounds often occur when futures open interest declines significantly.
Technically, the Pudgy Penguins price found a strong support at $0.0095, where it failed to move below this month. It had about five attempts to crash below that support point.
The coin has also failed to move above the resistance at $0.01130 this month. This consolidation may be a sign that bulls are accumulating. According to the Wyckoff Theory, this accumulation phase is usually followed by a mark up, which has higher demand than supply. It is also characterized by fear of missing out and animal spirits.
A bullish breakout above resistance could push PENGU toward the 23.6% Fibonacci retracement level at $0.0185, representing a potential 65% gain from current levels.
This article first appeared at crypto.news
