The price of Pudgy Penguins' PENGU token is testing a critical descending trendline as it faces renewed regulatory headwinds. The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed Pudgy Penguins (PENGU) exchange-traded fund (ETF) by 60 days, moving the new deadline to March 11, 2026. This filing, first submitted by Canary Capital in September 2025, has now seen multiple extensions, maintaining a cloud of uncertainty over the project.
At the time of writing, PENGU was trading around $0.012, up 0.2% over 24 hours and roughly 23% over the past week. However, on a 30-day view, the token remains down 4.4%, having moved between $0.009665 and $0.01363 over the last seven days. The market reaction to the ETF delay was immediate, with PENGU falling roughly 6% following the announcement.
Trading activity has softened, with daily spot volume at about $209 million and derivatives volume dropping 11% to $315 million. Open interest also fell 0.43% to $112 million, suggesting traders are reducing leveraged exposure while awaiting a clearer directional signal.
Technically, PENGU is at a significant inflection point. A descending trendline from the November highs near $0.038–$0.040 continues to cap upward moves. The recent rebound has pushed the price into the $0.0130–$0.0135 zone, an area that has consistently seen selling pressure and aligns with the 20-day moving average. Analysts note that a daily close above $0.0135–$0.0140 would mark the first real shift away from sustained downside pressure. On the downside, key support lies at $0.0120, with a break potentially opening a path toward $0.0103 and the cycle low near $0.0071.
The proposed ETF's unique structure adds complexity to the SEC's review. Planned for listing on the Cboe BZX Exchange, it would contain both physical Pudgy Penguins NFTs and PENGU tokens, which are based on Solana. This requires regulators to assess how NFTs are priced, stored, and brought into compliance—factors beyond typical crypto ETF filings. The regulatory delay persists despite continued brand momentum for Pudgy Penguins, including its recent "Year of the Penguin" campaign and a visual takeover of the Las Vegas Sphere.
