Pudgy Penguins (PENGU) experienced a significant price surge of approximately 22% following the Chicago Board Options Exchange (Cboe) filing for a pioneering ETF that combines a memecoin and NFTs. The proposed Canary PENGU ETF intends to allocate 80-95% of its portfolio to PENGU tokens, alongside 5-15% invested in Pudgy Penguin NFTs, with additional holdings in SOL and ETH for operational costs. If approved by the SEC, this ETF would mark a first in regulated funds pairing memecoins and NFTs.
The rally saw PENGU prices climb from $0.009 support to a local high near $0.01160, with trading volume ballooning by 287% to over $339 million, indicating strong market activity and investor interest. Technical indicators such as the Relative Strength Index (RSI) and Directional Movement Index (DMI) showed bullish momentum, positioning PENGU favorably for continued gains.
However, despite the spot price rally, derivatives market data paints a cautious picture. Funding rates have remained negative across major exchanges, signaling that traders hold bearish short positions. Open interest increased by 62%, primarily driven by short interest, reflecting skepticism among derivatives traders. Additionally, on-chain sentiment indicators, including weighted sentiment metrics and netflow analysis, suggest profit-taking behaviors and a tilt towards selling pressure.
The community buzz and whale activity have been major drivers behind the price upswing, amplified by social media hype and speculative interest. Nonetheless, no official confirmations have been made by major exchanges or project leaders about the ETF or whale involvement. The price is currently facing key resistance at $0.012, with analysts warning that failure to break through could lead to a retracement toward $0.010.
Founded by Luca Donofrio, the Pudgy Penguins NFT project transitioned to the Solana blockchain and launched the PENGU token in 2023. The recent surge mirrors historical memecoin rallies fueled by community enthusiasm rather than institutional support, implying potential volatility, especially given the uncertain regulatory environment.