IOTA (iota) 
Pudgy Penguins Token Shows Signs of Bottoming Out After 90% Crash
The Pudgy Penguins token has seen a significant price increase, rising to $0.011 on Friday, up by almost 20% from its all-time low. This rebound comes as third-party data shows a sharp decline in Pudgy Penguins sales due to waning demand.
Decline in Sales and Trading Volume
Sales have plummeted 55% in the past seven days to $5.1 million, with the number of transactions falling 45% to 186, and the number of buyers dropping to just 97. Over the past 30 days, sales have also declined by 57% to $44 million, with transactions and buyers decreasing by 29% and 38%, respectively.
Monthly trading volume has also dropped, declining from $114 million in December to $43 million in January and currently standing at $12.9 million this month.
Comparison with ApeCoin
The PENGU price action mirrors that of ApeCoin, the token created by Yuga Labs, the team behind Bored Ape Yacht Club. APE initially surged to $27 following its 2022 airdrop but has since crashed by more than 95%.
Signs of a Potential Bottom
There are signs that PENGU may have reached a bottom. Its futures open interest has dropped to $80 million from an all-time high of over $266 million. Historically, strong rebounds often occur when futures open interest declines significantly.
Technically, the Pudgy Penguins price found a strong support at $0.0095, where it failed to move below this month. It had about five attempts to crash below that support point.
The coin has also failed to move above the resistance at $0.01130 this month. This consolidation may be a sign that bulls are accumulating. According to the Wyckoff Theory, this accumulation phase is usually followed by a mark up, which has higher demand than supply.
Potential Price Movement
A bullish breakout above resistance could push PENGU toward the 23.6% Fibonacci retracement level at $0.0185, representing a potential 65% gain from current levels.
“This consolidation may be a sign that bulls are accumulating. According to the Wyckoff Theory, this accumulation phase is usually followed by a mark up, which has higher demand than supply.”
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