The price of Pudgy Penguins (PENGU) has recently dropped by over 11%, even after the meme coin briefly surpassed all other Solana meme coins by market capitalization. This price decline was largely triggered by profit-taking from key holders, often referred to as "whales," who moved more than $66 million worth of PENGU to exchanges since mid-July.
Adding to the selling pressure was a broader market trend where liquidity was pulled from most altcoins, except for Ethereum, due to a surge in Bitcoin's dominance. The tension surrounding the release of new U.S. Consumer Price Index (CPI) data also contributed to the volatility.
However, the recent CPI report, which showed lower-than-expected annual inflation, seems to be helping PENGU find a floor. This macroeconomic news prompted the price to bounce off a key diagonal support level.
Despite the recent sell-off, which saw a decline in both Open Interest and trading volume, there are some signs of a potential reversal. Funding rates on most exchanges are turning positive, which suggests that buyers may be starting to re-enter the market. The article notes that this price drop could be short-lived, with the next major test being whether PENGU can break above its declining resistance level. If it succeeds, the meme coin's historical pattern of ranging around its highs could signal a new bullish move.
August 2025, Cryptoniteuae