PENGU price tests descending trendline as SEC pushes back on Canary ETF decision

PENGU price is pressing into a descending trendline just as the Securities and Exchange Commission pushes back its decision on a Pudgy Penguins exchange-traded fund.

Summary

• PENGU is trading near $0.012, up on the week but still below key resistance after repeated rejections since November.
• Derivatives volume and open interest have dipped, pointing to reduced leverage as traders wait for a clearer directional signal.
• The SEC delayed its review of Canary Capital’s PENGU ETF to March, keeping regulatory uncertainty firmly in play.

At the time of writing, PENGU was trading around $0.012, up 0.2% over the last 24 hours. The token has gained roughly 23% over the past week, but that bounce has not fully reversed recent weakness.

On a 30-day view, PENGU is still down 4.4%, with the price moving between $0.009665 and $0.01363 over the last seven days. Trading activity has softened slightly. Daily volume came in at about $209 million, down 0.7% from the previous session.

Derivatives volume dropped 11% to $315 million, while open interest fell 0.43% to $112 million, according to CoinGlass data. This suggests that traders are reducing their exposure.

PENGU ETF delay weighs on sentiment

Caution deepened following new regulatory developments. On late Jan. 7, the U.S. Securities and Exchange Commission pushed back its decision on Canary Capital’s proposed Pudgy Penguins (PENGU) ETF by 60 days, moving the deadline to March 11.

The filing, first submitted in September 2025, has now seen multiple extensions, and regulators have yet to offer a clear response.

One notable aspect of the proposed ETF is its design. With plans to list on the Cboe BZX Exchange, it would contain both physical Pudgy Penguins NFTs and PENGU tokens, which are based on Solana. This setup introduces added complexity. 

Regulators are likely reviewing how NFTs are priced, stored, and brought into compliance, areas that go beyond the scope of most crypto ETF filings. Markets reacted almost immediately. After the delay was announced, PENGU fell by roughly 6%, showing how closely price action remains tied to ETF-related expectations.

The decline came despite continued brand momentum for Pudgy Penguins, including the recent “Year of the Penguin” campaign and its full visual takeover of the Las Vegas Sphere.

PENGU price technical analysis

From a technical view, PENGU is trading at an important inflection point. A descending trendline from the November highs near $0.038–$0.040 has continued to restrict upward moves.

The recent rebound has pushed the price back into the $0.0130–$0.0135 zone, an area where selling pressure has consistently appeared. This range aligns with the 20-day moving average and sits near the center of the recent consolidation, adding to its importance as a near-term resistance area.

Momentum has improved slightly.  Rising demand is indicated by the relative strength index, which is currently at 58, but has not yet reached previous overbought conditions.

The price is trading in the upper half of the Bollinger Bands, and overall volatility is still relatively small. Although the market hasn’t yet indicated which way it will go, this setup may precede a stronger move.

A daily close above $0.0135–$0.0140 would mark the first real shift away from sustained downside pressure. Until that happens, upside attempts are may quickly fade.

On the downside, support levels are clearly defined. The $0.0120 area has been defended multiple times during recent pullbacks. A failure there would increase downside risk toward $0.0103, followed by the broader swing low near $0.0071, which represents the cycle bottom on the chart.