Pudgy Penguins [PENGU] surged 22% after successfully defending its $0.009 support level, climbing to a local high of $0.01160. The sharp uptick came as trading volume exploded 287% to $339.58 million—suggesting that market participants took the rally seriously. The key catalyst? A new exchange-traded fund (ETF) proposal centered on the meme-fueled asset.
Canary’s PENGU ETF Proposal Sparks Market Frenzy
The Chicago Board Options Exchange (CBOE) submitted a Form 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) to list the Canary PENGU ETF. If approved, the ETF would allocate 80–95% of its holdings to the PENGU token, along with 5–15% exposure to Pudgy Penguin NFTs. A small portion of the portfolio would also include SOL and ETH for operational needs.
This would mark the first time a regulated financial product combines a memecoin with NFTs—an unprecedented move blending speculative digital assets with traditional market infrastructure. The news sent PENGU soaring, but technical indicators suggest the rally may be more speculative than sustainable.
Despite Price Spike, Derivatives Traders Remain Bearish
Notably, PENGU’s aggregated funding rate across exchanges remains negative, sitting at -0.0192 according to Coinalyze. This implies that short positions are paying to stay open, and market sentiment among derivatives traders remains largely bearish.
Open Interest also spiked 62%, a surge driven mainly by traders opening short positions—suggesting the ETF-fueled rally is being challenged by skepticism in the futures market.
On-chain data from Santiment further dampens optimism. Weighted Sentiment fell to -0.116, down from local highs just days earlier, reflecting growing doubt among investors.
Whale Behavior Hints at Profit-Taking, Not Accumulation
Adding to concerns, CoinGlass data shows a consistent positive Netflow, reaching $3.78 million. This signals more PENGU tokens are moving into exchanges than leaving—a pattern often associated with selling pressure. While short-term hype can drive price upward, sustained sell pressure from large holders could halt the rally in its tracks.
Also Read: Canary Capital’s PENGU ETF Gets CBOE Filing: What This Means for Meme Coin Investors
On the technical front, the Relative Strength Index (RSI) climbed to 57.17, breaking out of its previous downtrend and signaling bullish momentum. The Directional Movement Index (DMI) also tilted bullish, with the +DI at 25.2 and the -DI at 12.46.
However, a key resistance level looms at $0.012. Failure to break and hold above this mark could lead to a retrace toward the $0.010 zone, especially if ETF euphoria fades before the SEC responds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
