Whale exits and fresh inflows are shaping a tense battle for PENGU’s next move. Pudgy Penguins now sits near key supports, where oversold indicators and early buy signals suggest the market may be preparing for a rebound if sentiment shifts.

Smart Money Exits Add Pressure to PENGU

Recent on-chain data from Stalkchain reveals that PENGU has been the most sold token among smart money wallets over the last 24 hours, with net sales exceeding $300,000. This surge in realized profit-taking highlights a wave of short-term exits following recent volatility.

While selling activity has intensified, on-chain flows also show redistribution rather than total abandonment, suggesting that whales may be rotating liquidity instead of fully exiting the ecosystem. Still, until inflows start outweighing outflows, near-term pressure could persist, particularly if trading volume continues to thin out across major exchanges.

TD Sequential Signals Possible Bottom Formation

Ali Martinez’s latest update highlights that the TD Sequential indicator has flashed a buy signal for PENGU. This is the second “9” signal printed in recent months, with the previous one preceding a strong local rally.

Pudgy Penguins’ TD Sequential 9 buy signal hints at a potential reversal as price nears the $0.013–$0.014 support zone. Source: Ali Martinez via X

Technically, the chart shows Pudgy Penguins nearing a cyclical bottom, with candlestick bodies compressing after a prolonged decline from $0.04. The signal aligns with weakening bearish momentum and shorter candle lengths, suggesting selling pressure may be easing. If confirmed, this could indicate that the bottom is forming around $0.013 to $0.014, where multiple supports converge.

Historically, TD Sequential 9 buy signals have often preceded 10–40% rebounds in early phases before larger trends emerge. For participants watching reversals, this may be the first technical cue that PENGU’s downside exhaustion phase is nearing completion.

RSI Points to Deeply Oversold Conditions

Pudgy Penguins has dropped into a key support trendline, with RSI readings below 25, signaling extreme oversold territory. Historically, such readings have coincided with pivotal reversal zones.

PENGU RSI has plunged below 25, marking deeply oversold levels that often precede strong rebound phases. Source: SEMB via X

Price currently hovers around $0.0135, overlapping with the lower boundary of the previous ascending channel. A bounce from here could target resistance near $0.018 to $0.020, but confirmation requires a strong close above short-term structure. If momentum returns alongside rising RSI, it would validate early recovery strength and reinforce the bullish case.

PENGU Price Prediction: Preparing for a Strong Reversal Rally

BRUH’s outlook suggests that sentiment may soon flip sharply, as the market remains largely silent while technical compression builds. The chart highlights a potential breakout trajectory towards $0.08, once the current base consolidates.

PENGU forms a cup-like base as technical compression builds, hinting at a potential breakout towards $0.08. Source: BRUH via X

The structure implies a cup-like recovery forming along the mid-range, where accumulation appears to be underway despite low social traction. This quiet phase often precedes sharp moves, especially when combined with improving RSI and higher lows on the daily. If PENGU manages to hold above $0.012 support, the path towards a late-year breakout remains intact.

Final Thoughts: Capitulation or Accumulation Phase?

PENGU currently sits at a crossroads, heavy on-chain selling pressure but technically primed for a rebound. Smart money exits have cooled momentum, yet oversold readings across multiple indicators suggest the market may be nearing exhaustion.

If short-term liquidity stabilizes and buyers defend the $0.012 to $0.014 range, the setup could flip rapidly into a recovery structure, validating the bullish scenarios presented by Martinez, SEMB, and BRUH. Until then, participants should watch for RSI recovery and volume expansion as early cues of a potential reversal cycle into December.

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Filed under: Bitcoin - @ November 5, 2025 6:23 pm