PENGU Tests Key Resistance as SEC Delays Pudgy Penguins ETF Decision

• Pudgy Penguins (PENGU) is trading near $0.012, up on the week but still below key resistance after repeated rejections since November.
• The SEC has delayed its decision on the Pudgy Penguins ETF to March 11, increasing regulatory uncertainty and impacting PENGU's price and derivatives activity according to reports.
• Derivatives volume and open interest for PENGU have declined, indicating reduced leverage as traders await directional clarity.

Pudgy Penguins' native token PENGU remains under pressure amid the continued delay of the SEC decision on the Pudgy Penguins ETF. The regulator has extended its review period by 60 days, pushing the decision to March 11. This prolonged uncertainty has weighed on market sentiment, with PENGU experiencing a 6% drop following the announcement.

The ETF, proposed by Canary Capital, includes both PENGU tokens and Pudgy Penguins NFTs, a structure that introduces regulatory complexities not seen in traditional crypto ETF filings. As a result, the review process has taken longer than expected, with regulators focusing on how to price and store the NFTs alongside the token. This has led to a lack of clarity for investors and traders who were anticipating a clearer path toward approval according to analysis.

Market activity reflects cautious positioning. PENGU's derivatives open interest has fallen to $112.32 million, a 2% decline, while daily trading volume has dropped by 36%. This suggests that traders are reducing exposure and waiting for further developments as reported. The token has remained below key resistance levels defined by a descending trendline from November highs near $0.038–$0.040, and a sustained move above $0.0135–$0.0140 could signal a shift in momentum according to data.

What Is the Current Price Action?

PENGU is currently trading near $0.0120–$0.0135, a historically significant resistance zone where selling pressure has consistently emerged. Despite a 23% gain over the past week, the token has not broken decisively above this range. The RSI has dipped from 71 to 57, indicating profit-taking, and the token remains below the 100-day and 200-day moving averages as analysis shows.