- The PENGU token breaks out above key chart resistance after ETF acknowledgment, signaling a strong continuation of bullish momentum.
- Whale accumulation rose 21% in one month while exchange reserves dropped, pointing to long-term investor confidence.
- Funding rates turned positive, indicating increased demand for leveraged long positions and strengthening bullish sentiment.
PENGU, the native token linked to Pudgy Penguins, rallied over 23% intraday to reach $0.0177, marking its highest value since late January. This surge follows the U.S. Securities and Exchange Commission’s formal acknowledgment of a proposed spot PENGU ETF. The ETF plans to allocate 80 to 95% to the PENGU token and 5 to 15% to Pudgy Penguins NFTs. The regulatory acknowledgment represents a significant development in the approval process, often interpreted by markets as a bullish indicator.
Market Cap Recaptures $1 billion as It Grows
After the recent price movement, the market capitalization of PENGU exceeded the volume of 1 billion. This rebound points to the new confidence of investors. Prices of the token have increased by roughly 370% since its year-to-date low and more than 125% in the past month alone. This has seen it currently being at the 89th position in market cap of all cryptocurrencies and the best-performing cryptocurrency in the top 100 cryptocurrencies.
Technical analysis shows that PENGU has completed a bullish cup and handle pattern on the daily chart. The token rebounded from a March low of $0.0037 to a local peak in May, then formed a brief consolidation. This pattern typically signals a continuation of upward price movement once resistance is broken. The projected move from the breakout zone suggests a possible rise toward $0.0318, representing a potential 75% gain from current levels.
Analysis of on-chain statistics shows an increase in the number of holders in huge wallets. In the last month, whale addresses added to their holdings of PENGU by a factor of 21%, owning more than 2.18 billion tokens. At the same time, the amount of PENGU withdrawn into circulation of the exchanges dropped by 1.3 billion, or 8.3% of the circulating supply, from 15.6 to 14.3 billion, and this has been the case since the middle of July. This trend implies that there would be less pressure to sell in the short term and increasing confidence of long-term investors.
Bullish sentiment is confirmed with positive funding rates.
Moreover, the CoinGlass data on derivatives revealed that the weighted funding rate of PENGU went into positive figures during the current month. The positive rate of funding implies that longs are now paying shorts, indicating increased demand in the bullish holding. Such a move echoes the increased bullish sentiment in the short-term performance of the token.
