PENGU rose by 66% in a week! Pudgy Penguins (PENGU) experienced a 22% increase as the Chicago Board Options Exchange (CBOE) filed for the first ETF that combines meme and non-fungible tokens. This growth was reflected not only in price but was also supported by a 287% surge in trading volume, indicating strong appeal to investors. However, the big question is whether this trend is sustainable, especially as $0.012 becomes a key resistance level that needs to be overcome to confirm the next price increase.

Information on PENGU and ETF: The beginning of a breakthrough

The filing of Form 19b-4 by the CBOE with the SEC has opened a new chapter for PENGU. The ETF they are considering plans to allocate 80-95% of assets in PENGU and 5-15% in non-fungible tokens of Pudgy Penguins. This is the first time a managed fund combines a meme coin with non-fungible tokens.

The possibility of ETF approval will create a new wave in the market, encouraging investors to continue seeking opportunities in this sector. Significant investments in PENGU show confidence in the project's growth potential.

Is an ETF the path to victory?

While ETF news usually creates short-term price spikes, danger still lurks if derivatives traders are not involved. Typically, the funding rate for PENGU remains negative on major exchanges, indicating that many investors are holding short positions despite the market recovery.

However, the 62% increase in open interest shows a clear negative sentiment. A decline in positive emotions raises questions about the continuation of this growth momentum.

Kitties are joining... but not for purchase?

In the context of investors taking profits, PENGU's cash flow has recorded growth. According to CoinGlass, the net inflow to the fund reached $3.78 million. Such signs often precede potential selling pressure, leading to a possibility of price decline for this cryptocurrency.

Despite positive cash flow, trading activities show uncertainty in the recovery of PENGU's price. Investors are weighing risks and potential profits in this volatile context.

Is the Pudgy Penguins rally recovering?

Indicators such as RSI and DMI indicate that PENGU is in an upward price movement. RSI touched 57.17, showing increasing buying pressure. DMI also supports this trend, as +DI is above -DI, which is generally favorable for new buyers.

But $0.012 remains a key resistance level that PENGU must overcome to continue confirming the upward trend. If this level is not surpassed, the likelihood of a correction to $0.010 is quite high, especially as expectations regarding the ETF begin to decline.