Pudgy Penguins Token PENGU Surges 26% in One Day, 195% in One Month

Pudgy Penguins token, PENGU, has surged by 26% in a single day, reaching a price of $0.0288. This significant jump is part of a broader rally that has seen the token increase by 91% over the past week and 195% over the past month. The market capitalization of Pudgy Penguins is now approaching $2 billion, drawing comparisons to previous memecoin breakouts.

The recent surge in PENGU's price has sparked renewed investor interest. The token's market capitalization and the increase in speculative activity, as evidenced by the surge in derivatives activity, indicate a growing conviction among traders. The current rally is not solely driven by momentum but also by the token's real-world revenue and strategic developments.

Analyst Ali Martinez highlighted the similarities between PENGU and PEPE, noting that PENGU's price movements closely follow PEPE's past performance. However, Martinez pointed out a key difference: Pudgy Penguins has generated over $13 million in toy sales through retailers like Walmart and Target. This real-world revenue, combined with its IP model that shares royalties with NFT holders, positions Pudgy Penguins as a brand with tangible value.

Martinez believes PENGU is early in its growth cycle, especially with a spot exchange-traded funds now in the mix. The potential for further growth is supported by the recent developments in the spot exchange-traded funds (ETF) space. Canary Capital's spot ETF application, acknowledged by the U.S. SEC on July 9, proposes allocating up to 95% of the fund to PENGU and associated NFT assets. If approved, this would make PENGU the second memecoin after Dogecoin to reach this regulatory milestone, potentially attracting institutional investment.

Technical analysis indicates a bullish trend for PENGU. The price has broken above the upper Bollinger Band, signaling extreme momentum. However, the relative strength index (RSI) is at 81, suggesting that the token is in overbought territory. Despite this, strong volume and tight candles indicate that buyers are still in control. The moving averages, with the 50-day EMA and 20-day SMA significantly below the current price, support the breakout structure.

If PENGU maintains its momentum, a continuation toward the $0.035–$0.04 range is feasible. The 20-day moving average near $0.025 could provide support in case of a correction. While overbought signals call for caution, the current market dynamics suggest that bulls are in control, and further upside is possible.