It was stated that Panda was going to be softened, this felt like a pretty harsh blow. That is of course if it is Panda related. There is bound to be some collateral damage with these updates. I am going to hold off on drawing any conclusions and see if I have screwed up somewhere.
The reality is, it's not going to be a fast path to gain that traffic back. My daily traffic was the result of many months (over a year) of slow increases. So technically, my site is still relatively new. I spent six months coding the project in my spare time, launched, and then the search engines slowly picked it up. The fact that my results are the exact last result for many searches sounds some kind of an alarm. Even if some kind of penalty is lifted or eventually fades away, I am guessing my pages will need to start the climb from last position anyway.
The only thing which may lead me to believe it is Penguin related is that after the recent update a couple of weeks ago, I observed a steady increase of 15-20% visits from Google.