PENGU surges 10% after Canary Capital files for ETF

Token Pudgy Penguins has surged after Canary officially filed the PENGU ETF with the SEC. This news has boosted optimism, helping the Token recover and break through key technical levels.

Although it has seen a strong increase, indicators show there is still potential for further gains before the market enters an overbought state. Investors are closely watching whether this momentum can push PENGU above key resistance areas in the coming days.

PENGU indicators suggest more room for growth

PENGU, once the largest Solana meme coin, has surged after Canary filed the PENGU ETF, breaking above key Ichimoku levels.

The price has crossed both the Tenkan-sen and Kijun-sen lines and broken through the cloud, signaling a potential trend reversal. The strong bullish candle reflects increased buying momentum due to the ETF announcement.

With the cloud ahead turning green, the current setup favors the bulls.

The bullish crossover of the Tenkan-sen and Kijun-sen supports this view, indicating that if it holds above the cloud, further upside is possible. The ETF news has clearly shifted market sentiment, driving short-term momentum.

PENGU's RSI has risen to 62, from 44.86 just a few hours earlier, reflecting the increase in buying momentum.

The Relative Strength Index (RSI) is a momentum indicator that measures the speed and change of price movements, helping to identify overbought or oversold conditions.

With the current RSI at 62, the asset is approaching the buy zone but still below the overbought level of 70.

Interestingly, the RSI has not crossed above 70 since January 5th, suggesting that while momentum is increasing, there is still potential for further gains before reaching overbought conditions.

Will PENGU soon break above $0.010?

If the recent PENGU ETF news provides enough momentum to sustain the uptrend, PENGU could rise to test resistance at $0.0093, helping it climb among the largest Solana meme coins.

A breakout above that level could pave the way to $0.011, pushing the price above $0.010 for the first time in over a month and signaling a stronger recovery.

However, if the news fails to create sustained buying pressure, a downtrend could soon develop.

In that scenario, it could drop to test support at $0.0062. If that level is breached, it could further decline to $0.0057 or even $0.0050, wiping out much of the recent gains.