PENGU drops below 0.011 USD – Is partnering with Manchester City a trap?

Pudgy Penguins (PENGU) started the new year around $0.009, after an impressive breakout phase.

As speculative capital flowed in, the price quickly surged to about $0.013, accompanied by a significant increase in trading volume – a clear sign of speculative confidence rather than long-term accumulation. However, this upward momentum did not last. Early investors began taking profits as buying pressure waned.

At the same time, leveraged traders faced pressure amid a market sentiment shifting to “risk-avoidance.” Selling volume surged, indicating distribution from “fast money” rather than panic from long-term holders. This imbalance pushed the price below $0.011, triggering a series of stop-loss orders.

Source: TradingView Once this support zone was broken, the decline accelerated. Demand weakened noticeably, while selling pressure increased, creating a cautious atmosphere across the market. Traders had to switch to defensive strategies, remaining alert to any further volatility.

From a technical perspective, large red candles confirm this is a distribution phase, not a healthy correction. MACD has deepened into negative territory, while RSI has fallen into oversold levels, reinforcing downward momentum on shorter timeframes.

The current recovery depends on stability around $0.010 and sustained capital flow. A decisive move above $0.011 will be necessary to rebuild the bullish structure and restore market confidence.

The fading hype of PENGU collaboration as Traders rotate capital

PENGU started January around $0.009, supported by a broader memecoin recovery wave and speculative flows.

Growth expectations were further boosted by the anticipated partnership with Manchester City on January 15, as investors valued the brand and future utility potential. This agreement will be implemented gradually.

In the short term, focus is on launching NFTs and merchandise, but long-term goals aim at deep cultural integration and revenue generation, rather than immediate token utility. As the long-term strategy becomes clearer, the temporary price rally paused around $0.011–$0.012, with investors selling the news to take profits and shifting away from speculative flows.

The unwinding of leverage combined with weak buying pressure caused the price to drop 4–5%, expanding losses to about 15% from the early January peak. This movement reflects capital rotation within the industry, rather than panic selling.

Why the $0.010–$0.012 zone determines PENGU’s next trend

What initially appeared as a quick brand victory quickly turned into a real market test. In the short term, PENGU faces a clear two-way path, driven by liquidity and investor sentiment.

On the downside, if the $0.010 support level is not maintained, the price could continue falling to the $0.009–$0.0095 range. This zone coincides with previous accumulation phases, reflecting memecoin’s prolonged weakness, thin trading volume, and persistent “risk-avoidance” sentiment.

Source: TradingView Conversely, to recover, PENGU first needs to break above $0.0115. A steady move above $0.012 would indicate selling pressure has been absorbed, neutralizing the recent “sell-the-news” effect.

This shift will likely depend on overall memecoin capital inflows, increased trading volume, and improved market sentiment, rather than specific news events.

Until one of these key levels is broken, the price may continue to fluctuate within the current range, reacting to support and resistance levels rather than forming a clear trend.