PENGU Surges Past Key Resistance, Eyes Further Gains

PENGU is on fire, folks! This token just smashed through the neckline of a classic cup and handle pattern on the daily chart, signaling a breakout that could send it soaring even higher.

Pudgy Penguins (PENGU) exploded over 23% in a single day, hitting $0.0177 - its highest level since January 29. The latest surge has boosted the token's gains to a whopping 125% from last month's low and a mind-blowing 370% above its year-to-date bottom. This thing is unstoppable!

PENGU's rally has propelled it to the top of the leaderboard among the top 100 crypto assets by market cap. It's now the 89th largest crypto, with its market cap reclaiming the coveted $1 billion mark. Investors are back in full force, and they're not messing around.

The catalyst for this latest surge? The U.S. Securities and Exchange Commission just gave a nod to the proposed Canary spot PENGU ETF filing. That's right, the big dogs are getting ready to bring PENGU to the masses!

This ETF is set to allocate a massive 80-95% of its assets to PENGU tokens and 5-15% to Pudgy Penguins NFTs, giving investors exposure to the entire Pudgy Penguins ecosystem. It's a game-changer, people!

When the SEC gives you a thumbs up, you know it's on. This acknowledgment is the first step in the approval process, and it's got investors feeling bullish as hell.

But wait, there's more! On-chain data shows that the whales are diving in head first, increasing their PENGU holdings by a staggering 21% over the past month. They're now sitting on a cool 2.18 billion tokens, and they're not letting go. These savvy investors are buying up the dips and holding for the long haul.

At the same time, PENGU's circulating supply on exchanges has taken a nosedive, dropping from 15.6 billion on June 12 to just 14.3 billion this week. When the supply on exchanges shrinks, it means fewer tokens are available for sale, and that's a bullish sign if I've ever seen one.

And if that's not enough to get your heart racing, check this out: PENGU's weighted funding rate just flipped positive on derivatives exchanges for the first time since July 1. When longs are paying shorts, it's a clear sign that the bulls are taking charge and demand for leverage is through the roof.

PENGU Price Forms a Cup and Handle Pattern

Let's take a closer look at that daily chart, because PENGU is painting a picture of pure bullishness with its cup and handle pattern. This token hit rock bottom at $0.0037 back in March, but it bounced back like a champ, reaching a local high of $0.0175 in May. That's the rounded base of the cup, and the handle? That's just a brief consolidation phase before the big move.

The cup and handle is a two-part deal: first, you get the initial drop and recovery that forms the cup, then a smaller, shallower pullback that creates the handle. It's a tried-and-true bullish continuation pattern, and PENGU just shattered the neckline resistance like it was nothing.

When a token breaks above the neckline of a cup and handle, it's go time. The vertical distance from the cup's upper resistance to the March low is a whopping 79%, and if we apply that to the breakout point, we're looking at a potential target of $0.0318. That's a jaw-dropping 75% gain from where we're at now!

But hold on to your hats, because there's a catch. If PENGU drops below the support level at $0.0142, this whole bullish party could be over. But as long as it stays above that line, the sky's the limit.

Right now, PENGU is still a ways off from its December 2024 high of $0.06845, but with this kind of momentum, who knows how far it could go?

Disclosure: This article is for educational purposes only and does not constitute investment advice. Do your own research and invest at your own risk, folks!