PENGU Price Tests Key Trendline Amid SEC's ETF Decision Delay

As the U.S. Securities and Exchange Commission (SEC) postpones its decision on a proposed Pudgy Penguins exchange-traded fund (ETF), PENGU's price is making its way toward a descending trendline.

Key Takeaways

PENGU is currently trading at approximately $0.012, having gained 23% over the past week.
The SEC has delayed its decision on the Pudgy Penguins ETF, originally submitted in September 2025, further extending the review period.
There has been a slight decrease in trading volume and trader exposure according to recent data.
Technical analyses indicate PENGU is at a crucial point, with vital resistance and support levels identified.

Chart showing PENGU price consolidating

Current PENGU Price Performance

At the moment, PENGU trades at around $0.012, reflecting a modest increase of 0.2% over the last 24 hours. Over the past week, the token has surged approximately 23%, although this bounce has not fully countered earlier declines.

In the last 30 days, PENGU prices have dropped by 4.4%, oscillating between $0.009665 and $0.01363 this past week. Daily trading volume has diminished slightly, reported at about $209 million, a decrease of 0.7% compared to the previous day. The derivatives market saw an 11% drop to $315 million in volume, while open interest decreased 0.43%, settling at $112 million, as per CoinGlass data. This decline indicates that traders are lessening their market exposure.

Impact of ETF Delay on Sentiment

The sentiment surrounding PENGU has weakened following recent regulatory developments. On January 7, the SEC announced a 60-day delay in its decision regarding Canary Capital’s proposed Pudgy Penguins ETF, pushing the deadline to March 11. Initially filed in September 2025, this proposal has already undergone several extensions with regulators offering no clear direction.

This ETF proposal is unique in its structure, intending to list on the Cboe BZX Exchange, featuring both physical Pudgy Penguins NFTs and PENGU tokens, which utilize the Solana blockchain. This complexity likely demands thorough regulatory review focused on how NFTs are priced and stored, which goes beyond typical crypto ETF evaluations.

Market reactions were swift; following the announcement, PENGU's price dropped by around 6%, indicating a strong connection between price movements and ETF-related expectations. The decline occurred despite ongoing brand initiatives for Pudgy Penguins, including the "Year of the Penguin" campaign and a visual presence at the Las Vegas Sphere.

Technical Analysis of PENGU Price

From a technical perspective, PENGU finds itself at a vital inflection point. The resilience of a descending trendline, drawn from November highs of $0.038 to $0.040, continues to hinder upward movement.

PENGU daily chart

The recent rebound has propelled the price back into the $0.0130 to $0.0135 range, an area where selling pressure has frequently emerged. This range coincides with the 20-day moving average and represents a central point of the recent price consolidation, heightening its significance as near-term resistance.

Momentum has seen a slight uptick, with the relative strength index now standing at 58, indicating rising demand, although it has not yet reached previously overbought conditions. The price action is currently situated in the upper portion of the Bollinger Bands, with overall volatility remaining relatively low. While the market has yet to signal its next direction, such a setup may lead to a stronger price movement.

A daily close above $0.0135 to $0.0140 could signify a significant shift away from the prevailing downward pressure. Conversely, if the price fails to hold in the $0.0120 zone, downside risks may increase, targeting $0.0103, followed by broader swing lows near $0.0071, which serves as a potential chart bottom.