PENGU's recent rally may be artificial to absorb token unlock, analyst says

The recent price surge of Pudgy Penguins (PENGU) may be an artificial process designed to absorb a large volume of unlocked tokens, DNTV Research analyst Bradley Park said in an interview with CoinDesk. He noted that on April 17, 703 million PENGU, equivalent to 0.79% of the supply, were unlocked. Park suggested that large holders may have used positive news to secure enough buying pressure to absorb their sell-offs. The unlocked tokens were quickly moved to 19 separate addresses, a pattern that Park believes indicates preparation for a staggered sale to avoid shocking the market. He emphasized that as positive news about PENGU was released, open interest in the futures market surged, triggering a short squeeze that further fueled the price increase. Park described this as an environment engineered by the recipients of the unlocked tokens to offload their holdings at a high price.