The Pudgy Penguins token, PENGU, rose 16% on June 7, following the broader cryptocurrency market's recovery. During the same period, the memecoin sector increased by 5.82%, nearly recovering the previous day's losses. However, trading activity remained weak, with total memecoin volume declining by 40% and PENGU's volume dropping by 30%.
Funds flow back on-chain holdings
On-chain data shows that buying pressure primarily came from large holders. Exchange balances decreased by over 400 million PENGU, a reduction of approximately 7.53%, leaving 18.33 billion PENGU in exchange reserves. Typically, such outflows indicate that holders are transferring tokens off exchanges, reducing selling pressure.
Large players and smart money are increasing positions in unison.
Whale holdings increased by 18.28% to 656.82 million. Holdings of public figures tracked by Nansen also rose by 9.3% to 138.73 million. Smart Money holdings rose to 201.63 million, and the top 100 addresses continued to accumulate. Data from CoinMarketCap shows the total number of holding addresses increased from 849,680 to 849,880.
The short-term rebound still needs confirmation.
From the price action, PENGU has reclaimed the pullback range from its April rally and has once again risen above the 90% Fibonacci retracement level. The RSI has climbed above 50, nearing 55, indicating improved buying momentum. The market will now need to watch whether the price can reassert itself above the Supertrend level around $0.0071 to $0.0073.
Overall, PENGU's recent price increase has been accompanied by a decline in exchange balances and increased accumulation across multiple asset classes, but trading volume has not yet significantly expanded, so the sustainability of this rebound remains to be seen.