PENGU looks set to extend its rally after breaking above the neckline resistance of a classic cup-and-handle formation on the daily chart.
Pudgy Penguins surged over 23% intraday to reach $0.0177—its highest level since January 29. With this move, the token has gained more than 125% since last month’s low and is now up roughly 370% from its year-to-date bottom.
This impressive rally has pushed PENGU into the spotlight as the top-performing asset among the 100 largest cryptocurrencies by market cap. It now ranks as the 89th largest crypto asset, with its market capitalization reclaiming the $1 billion mark—an important milestone that reflects renewed investor confidence.
Fueling the latest leg of the rally was the U.S. Securities and Exchange Commission’s formal acknowledgment of the proposed Canary spot PENGU ETF filing. The ETF aims to allocate 80–95% of its assets to PENGU tokens and 5–15% to Pudgy Penguins NFTs, offering investors a unique blend of token exposure and participation in the broader Pudgy Penguins intellectual property ecosystem.
Such an acknowledgment from the SEC is widely interpreted as a bullish signal, marking the initial step in the regulatory approval process.
Adding to the bullish outlook, on-chain data shows that large holders—or whales—have increased their PENGU holdings by 21% over the past month, now collectively holding 2.18 billion tokens. This steady accumulation during dips suggests rising long-term confidence among seasoned investors.
At the same time, PENGU’s circulating supply on exchanges has dropped significantly—from 15.6 billion on June 12 to 14.3 billion this week. This decline in exchange reserves is generally seen as a bullish signal, suggesting reduced selling pressure as more tokens are moved to cold storage or long-term holdings.
Adding further momentum to the bullish narrative, data from CoinGlass shows that PENGU’s weighted funding rate on derivatives platforms has turned positive for the first time since July 1. A positive funding rate means long traders are paying shorts, typically indicating a rise in bullish sentiment and increased demand for leveraged long positions.
PENGU price charts a cup-and-handle formation
PENGU’s daily chart displays a well-defined cup-and-handle pattern—a classic bullish continuation setup. After bottoming out at $0.0037 in March, the token steadily climbed to a local high of $0.0175 in May, forming a rounded base. This was followed by a brief consolidation phase, shaping the “handle” that completes the pattern.
The cup-and-handle pattern consists of two key price movements: a deep decline followed by a recovery forming the “cup,” and a subsequent, shallower pullback that creates the “handle.”
PENGU has now broken above the neckline resistance of this formation—a classic signal that typically marks the beginning of a bullish breakout.
The vertical distance from the March low to the cup’s resistance zone measures roughly 79%. Projecting this move from the breakout point yields a potential upside target around $0.0318, implying an approximate 75% gain from current levels.
However, this bullish scenario would be invalidated if the price falls below the key support level at $0.0142.
Despite its recent rally, PENGU still trades well below its December 2024 peak of $0.06845, suggesting considerable room for further upside if bullish momentum persists.
