PENGU Price Jumps 30% Today As SEC Acknowledges Canary’s ETF; Is $0.035 Next?

Pudgy Penguins (PENGU) has recorded a massive rally in the last 24 hours after surging by more than 30% during this time, to trade at $0.0196 today, July 10. The gains come after reports that the US Securities and Exchange Commission (SEC) had acknowledged Canary’s filing for a PENGU ETF. Meanwhile, a bull flag pattern suggests that the ongoing PENGU price rally is only getting started, and the meme coin might reach $0.035.

PENGU Price Soars 30% Amid Bull Flag Breakout

PENGU price has been trading within a bull flag pattern, and after its massive gains in the last 24 hours, it has finally broken out, confirming that bulls are fully in control. However, this breakout is not the end of this rally because the upward trend might continue up to the target price of $0.035.

However, despite this breakout rally, PENGU has yet to confirm a daily close above the resistance level of $0.0156. This top meme coin on the Solana blockchain needs to close today’s candlestick above this resistance level and later retest this level as a strong support to confirm that the bullish flag breakout has happened.

Getting to the bull flag’s target price will mark the highest level that Pudgy Penguins has attained since January. Besides, the indicators are showing that the rally might still be in its initial stages, and more gains might be imminent.

When the ADX line is rising like it is now, it shows that the upward rally that started in late June will likely continue. Additionally, the positive CMF indicator that has been creating higher highs is also favoring a bullish outlook, as the PENGU price will likely benefit from the positive capital inflows.

Besides the technical structure that favors bullish traders, the ongoing developments within the Pudgy Penguins ecosystem also suggest that more gains are likely to happen.

SEC Acknowledges Canary’s PENGU ETF as Open Interest Soars

The SEC has acknowledged the filing by Canary for a spot PENGU ETF, and this is driving bullish optimism towards the token. As CoinGape reported, Canary submitted its 19b-4 filing for this product in late June, and the recent acknowledgement is one step closer towards the product being approved.

The recent acknowledgement is not only behind the recent gains in PENGU price, but it is also behind the massive increase in open interest in the last 24 hours. During this time, the meme coin’s OI has increased by 52% to $278 million per Coinglass data.

However, this increase appears to come from traders who are increasing their short position bets on PENGU due to the deeply negative funding rate, as bears become willing to pay more to keep their positions open. On OKX and Binance, the long/short ratio has dropped to 0.36 and 0.72, respectively, indicating that traders are bearish.

In conclusion, PENGU price might continue to lead gains across the broader crypto market as a bull flag breakout suggests that the rally might not be over. If the ongoing short positioning leads to a squeeze, this could likely influence the next bullish leg.