Pudgy Penguins rally linked to token unlock enabling large holders to sell amid rising liquidity.

Pudgy Penguins' recent PENGU token rally coincided with an April 17 token unlock releasing 703 million tokens, about 0.79% of total supply. On-chain data shows these tokens were quickly spread across multiple wallets, suggesting large holders prepared to sell as liquidity increased. Futures open interest rose sharply, with short squeezes amplifying price gains, creating ideal conditions for holders to exit positions without pushing prices down. Analysts believe the rally was engineered to provide exit liquidity, with ecosystem news serving as cover rather than the primary cause. Monthly token unlocks will continue, making it key to watch if demand sustains or if price moves are mainly driven by supply events.