Last updated:
Author
Alejandro Arrieche
Author
Alejandro Arrieche
Share
Why Trust Cryptonews
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
The widely awaited airdrop of the official token of the Pudgy Penguins collection of NFTs has not gone well as the value of the token has collapsed less than 5 days after the event.
According to data from decentralized exchanges (DEXs), the price of $PENGU dropped by 57% just 24 hours after the airdrop was completed. This decline came after a short-lived spike that propelled the price to $0.068.
However, just hours later, the token is trading at $0.028 while the project’s market capitalization fell from $4.3 billion to just $1.7 billion as per the latest data from CoinGecko.
In a similar way, the floor price of the project’s non-fungible tokens (NFTs) has experienced a significant decline during the same period, moving from a 30-day peak of 34.8 ETH ahead of the airdrop to just 18.2 ETH as of today.
Airdrop farmers and speculators are apparently behind the significant volatility that $PENGU has experienced recently. Data from the crypto analytics firm Lookonchain cited one trader who made $8.4 million in profits in just 20 minutes by trading $PENGU.
This wallet bought around $5.4 million worth of $PENGU tokens right after they became available and quickly sold when the price spiked.
This behavior is consistent with the trading volumes that the $PENGU token saw hours after the airdrop, with early estimates indicating that around $425 million were traded within the first four hours.
$PENGU’s Price Settles Above $0.23 Upon Securing Top CEX Listings
The project’s developing team rapidly announced on X that they had secured the listing of $PENGU on major exchanges including OKX, Binance, and Crypto.com. This increased the token liquidity but also opened the flush gates to massive liquidity and the possibility of sehalling large batches of tokens to a larger number of investors.
Despite this significant volatility, the project’s official X page posted that $PENGU surpassed 500,000 holders just 19 hours ago. This is consistent with the stability that the price has experienced in the past three days or so as it has settled at around $0.025 and $0.027 per token.
For now, the lowest that $PENGU has gone is $0.023 per token. This is more than two-thirds lower than the token’s peak price on Binance of $0.07 but it appears that this was a price at which buyers were willing to step in again after the initial hype.
The current price action seems to indicate that a falling wedge is forming as lower highs are encountering higher lows according to the chart. The breakout price at this point would be the $0.03 mark.
If the price surges above that level, the market could retest the levels seen in December 21 and this could mean that $PENGU could be poised to recover some of the territory it lost after the airdrop.
The Relative Strength Index (RSI) is already indicating that the token’s price is experiencing some positive momentum as it crossed the 50 mark and is on a clear uptrend.
However, the demand for the project’s NFTs and how its floor prices have succumbed following the event are indications that farmers were quite active and distorted the price of these assets since December 5 when the airdrop was announced.
Meanwhile, if late buyers do show up after this post-airdrop spike, the price could move to the $0.04 area, which was also a contended spot for traders the day after the airdrop was completed.
You Have 24 Hours to Invest in This Successful Presale Token
The $PENGU airdrop may have not gone as expected but one token could capture investors’ interest in the near term based on the significant capital the project has managed to raise in a relatively short period.
We are talking about Solaxy and its native token $SOLX, whose presale has attracted more than $4.52 million from investors. The project consists of a layer-two network for the Solana blockchain that offers zero congestion, errors, or delays.
As interest in meme coins and other segments of the Solana ecosystem continues to grow, the mainnet has experienced significant congestion from time to time. This is where Solaxy comes to the rescue as it bundles transactions securely and processes them offline.
The $SOLX presale ends in just 24 hours and the amount it has raised those far is interpreted as an early indication that investors will be eager to get their hands on this token once it hits decentralized exchanges (DEXs).
Moreover, the success of the project to raise capital in this early stage could also put it on the radar of major centralized exchanges (CEXs).
To buy $SOLX, just visit the Solaxy website and connect your wallet. You can convert ETH, USDT, or BNB tokens or pay with a bank card if you don’t own any of these cryptos at the moment.
Moreover, if you don’t have a crypto wallet, you can try out Best Wallet – an innovative Web 3 storage solution that offers multiple advanced features and that has been touted by some analysts as the MetaMask killer.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
