According to crypto.news data, Pudgy Penguins (PENGU) was trading at $0.035, marking an 11.6% gain in the past 24 hours and a 19% rise over the week. Despite the rally, the token still sits 22% below its July peak of $0.045.
Today’s surge came with a threefold jump in daily trading volume to $951 million, while market capitalization crossed $2.2 billion — pushing PENGU ahead of established players like Kaspa and Cosmos Hub.
On the technical side, PENGU has confirmed a breakout from a falling wedge formation on the daily chart. The token had been consolidating within this pattern for seven weeks. As a classic bullish continuation setup, the falling wedge often precedes strong upward momentum once price breaks above resistance.
On a higher timeframe, the falling wedge also forms the handle of a larger cup-and-handle pattern that has been developing since early this year.
This classic setup features a rounded base (the cup) followed by a brief pullback (the handle). A breakout from the handle typically signals the start of a strong upward rally.
Technical indicators support this bullish outlook. The MACD has just flashed a buy signal with a positive crossover and expanding green histograms. Meanwhile, the RSI has climbed above 59, reflecting growing buying momentum.
With this setup, PENGU is now eyeing a retest of its July high at $0.045, which also aligns with the upside target from the falling wedge breakout. A decisive move above the $0.047 neckline would validate the larger cup-and-handle structure and potentially pave the way for extended gains. On the downside, however, a drop below $0.027 would negate the bullish scenario.
Bullish drivers fueling PENGU’s rally
Several catalysts are aligning to support further upside in Pudgy Penguins.
A key factor is renewed community enthusiasm, boosted by anticipation around the U.S. SEC’s pending decision on the first PENGU ETF — the Canary Spot PENGU ETF — expected by Oct. 12. While the proposal has faced previous delays, traders view it as a sign of growing institutional openness toward meme assets, particularly given its unique design combining PENGU tokens with NFTs.
On-chain data also points to steady accumulation, while engagement metrics reveal untapped potential. In a recent X post, the Pudgy Penguins team noted that while the project counts more than 800,000 holders, just 5,700 have joined the “PENGU Platoon,” its core community hub on X. This suggests a large pool of passive holders that could still be activated, further fueling momentum.
