PENGU Plunges 20% in 7 Days — Can Bulls Spark a December Comeback?

• PENGU fell 20% after SEC-linked news triggered heavy selling and weakened market confidence.

• Price trades near key support as December liquidity remains thin across memecoin markets.

• Bulls need a breakout above $0.013 to signal any meaningful recovery.

Pudgy Penguins — PENGU, suffered another rough week as price action rattled remaining holders. A sharp 20% decline erased recent gains and dragged sentiment lower across the Pudgy Penguins community. The selloff followed fresh regulatory headlines tied to early venture backers, which quickly spooked traders. Buyers attempted a bounce, but momentum faded fast, leaving many questioning whether December offers recovery or further downside.

Gao said in a 2023 interview with CoinTelegraph that his firm was “work[ing] daily to maintain SEC compliance.”

In 2024, Fortune reported that “Gao funneled investments into a secret offshore entity he wholly owned without disclosing the arrangement to investors.” pic.twitter.com/5gc9EC1EWE

— Kate Irwin (@kateirwin) December 16, 2025

SEC Headlines Add Pressure as Market Confidence Slips

PENGU’s price now trades nearly 69% below the all time high near $0.04. Selling pressure intensified after reports linked the SEC to venture capital exposure connected to Pudgy Penguins. Crypto journalist Kate Irwin revealed that the SEC recently sued Shima Capital and founder Yida Gao. The lawsuit alleges investor deception through undisclosed financial arrangements.

Court documents referenced internal emails where Gao discussed stepping down and winding down the fund. Previous public interviews painted a different picture, with Gao claiming daily efforts toward SEC compliance. Later reporting from Fortune alleged funds moved through an offshore entity without disclosure. Shima Capital manages roughly $200 million and backed several notable crypto projects, including Pudgy Penguins.

Following the news, Pengu dropped 20% to levels below $0.0097 before staging a modest bounce. That rebound lacked conviction, and volume remained thin. Market participants continue assessing how legal uncertainty may impact long term sentiment. Large holders appear cautious, showing patience rather than aggressive accumulation during current conditions.

Technical structure also reflects growing fragility. Pengu declined roughly 66% during the past two and a half months. Price now sits near a key support level around $0.0093. A clean breakdown below that zone could open the door for further losses. Traders remain focused on whether buyers can defend this critical area.

Can December Deliver Relief or More Pain for PENGU?

Liquidity conditions offer little relief. Retail participation across memecoin markets remains muted. Holiday periods historically drain speculative capital, and December often ranks among the weakest months for memecoin performance. Lower engagement limits the probability of sustained upside moves without external catalysts.

A December recovery faces significant challenges under present market dynamics. Memecoin interest sits near five year lows across major tracking platforms. Reduced attention weakens momentum and shortens rally lifespans. Without renewed enthusiasm, upside attempts often stall quickly. For bullish momentum to return, Pengu must reclaim the $0.013 level with strong volume support.

Whale accumulation rumors continue circulating across social channels. Confirmed on chain accumulation would shift sentiment rapidly. Until evidence appears, risk remains elevated for short term positions. December may test discipline more than optimism for Pengu holders.Would you like this adapted for SEO optimization, a stronger bullish angle, or a more neutral analyst tone?