PENGU Tests Key Resistance as SEC Delays Pudgy Penguins ETF Decision

• PENGU is trading near $0.012 amid a delayed decision on the Pudgy Penguins ETF by the SEC.
• Derivatives volume and open interest for PENGU have declined, indicating traders are cautious and waiting for a clearer directional signal.
• The proposed ETF includes both PENGU tokens and physical NFTs, introducing regulatory complexity and uncertainty.

The Pudgy Penguins (PENGU) token is currently trading near $0.012, hovering close to a descending trendline that has repeatedly rejected upward attempts since November. This trendline forms a key resistance zone, and a breakout above $0.0135–$0.0140 could signal a potential 45% upside.

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital's proposed Pudgy Penguins ETF to March 11, prolonging regulatory uncertainty. This delay has led to reduced leverage among traders, with derivatives volume and open interest declining by 11% and 0.43%, respectively. Traders are closely watching the outcome of this review, as it could significantly influence market sentiment for PENGU.

PENGU has gained roughly 23% over the past week, but it remains below key resistance levels defined by a descending trendline from November highs near $0.038–$0.040. The proposed ETF, which includes both PENGU tokens and physical NFTs, faces regulatory complexity, and the SEC has not indicated a clear leaning toward approval or rejection.

What Is the Current Price Action for PENGU?

PENGU is currently trading near $0.012, up 23% on the week, but still below key resistance after repeated rejections since November. The price is testing a critical inflection point near the descending trendline, which has restricted upward movement. A daily close above $0.0135–$0.0140 would mark the first significant shift away from sustained downside pressure and could potentially open the door toward the $0.01922 level.

Derivatives volume and open interest have declined, indicating traders are reducing exposure and waiting for clearer signals before taking positions. This reduction in leverage suggests market participants are cautious and monitoring both price action and regulatory developments.

What Is the Impact of the SEC's Delayed Decision on the Pudgy Penguins ETF?

The SEC's decision on the Pudgy Penguins ETF has been delayed to March 11, prolonging regulatory uncertainty. The proposed ETF, filed by Canary Capital, aims to provide investors with exposure to both PENGU tokens and physical NFTs. This regulatory complexity has contributed to the extended review timeline and increased market uncertainty.

Markets reacted almost immediately to the announcement of the delay, with PENGU falling by roughly 6%. This response indicates how closely price action remains tied to ETF-related expectations. Until there is a confirmed breakout, caution is advised.

What Are the Key Technical Levels and Market Sentiment for PENGU?

PENGU is currently testing key resistance levels near $0.0135–$0.0140. A breakout above this zone could signal a potential 45% upside to $0.01922, according to technical analysis. The price has also retested the 50-day moving average at $0.01062, a level that previously acted as dynamic resistance.

Support levels are clearly defined, with the $0.0120 area having been defended multiple times during recent pullbacks. A failure to hold this level would increase downside risk toward $0.0103, followed by the broader swing low near $0.0071.

On-chain and derivatives data indicate bullish momentum, with large whale orders and increasing open interest. Open interest for PENGU futures rose to $123.55 million, the highest level since October 16. The collective mindshare of Pudgy Penguins has surpassed 300 billion views, signaling growing investor interest and adoption.

Market sentiment remains closely tied to regulatory developments, with a daily close above $0.0135–$0.0140 potentially validating the right-angled descending broadening pattern. A successful close above this zone would mark a significant bullish reversal, opening the door to higher price levels.