The post Nietzschean Penguin hits ATH, then crashes – Why ‘scarcity’ fails to save bulls appeared on BitcoinEthereumNews.com.

Nietzschean Penguin [PENGUIN] launched with thin liquidity, then surged rapidly from below $0.01 to an all-time high near $0.167 on the 24th of January, a move that unfolded in days rather than weeks. The memecoin launched with thin liquidity and minimal price discovery. Thereafter, it accelerated sharply as speculative interest entered the market, a rally that unfolded within a few sessions rather than over sustained accumulation. Source: TradingView This surge implied momentum-driven positioning, supported by hype and concentrated flows instead of organic demand. Shortly after the peak, buying pressure faded and distribution began. Price rolled over and successively lost the $0.086 and $0.07 support zones, confirming a structural shift. Selling intensity increased as liquidity thinned. The token traded around $0.037–$0.042 at press time, marking a drawdown of roughly 75% from the high. RSI trended toward oversold territory, suggesting selling exhaustion rather than reversal. Volatility remained elevated, reinforcing risk. Support formed near $0.036–$0.038, while resistance sat at $0.05–$0.06. The broader structure still favors bearish continuation. PENGUIN’s sell-off overruns whale accumulation A whale with the wallet address “8cgRT” initiated transactions, accumulating a total of $305,300 worth of PENGUIN. These transactions were done through repeated buys across Meteora, Pump.fun, and OKX routes. These entries clustered between 6 and 7 days ago, indicating aggressive averaging rather than a single conviction entry. However, price action deteriorated rapidly. Source: Stalkchain/ X As PENGUIN continued its sharp decline, liquidity thinned and slippage increased. The whale exited in one sweep, realizing $210,700 and locking in a $92,700 loss. This outcome reflected timing risk rather than execution failure. The loss stemmed from sustained downside momentum in the memecoin, where accelerating sell pressure overwhelmed short-term liquidity and invalidated the accumulation narrative. PENGUIN shows scarcity isn’t enough Nietzschean Penguin operates with a fixed supply of 1 billion tokens, with roughly 999.98…

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Filed under: News - @ February 1, 2026 8:21 pm