PENGU Price Prediction: Cup and Handle Pattern Breakthrough Completed, Target Price $0.0318?

The focus token in the Crypto Assets market, PENGU (Pudgy Penguins), has recently performed exceptionally well. Its price has shown the potential to maintain a strong rising trend after successfully breaking through the key cup and handle pattern neckline resistance level on the daily chart.

Gate market shows that PENGU is currently priced at 0.018996 USD, with a 24-hour pump of 28.74%.

Price Surge and Market Position Jump

• Daily surge of 23%: PENGU price soared over 23% in a day, reaching a high of $0.0177, marking a new price peak since January 29.
• Monthly Rise is Amazing: This round of pump has caused the Token to exceed a cumulative rise of 125% since its low point last month, and compared to its lowest point since the beginning of the year, the rise has reached an astonishing 370%.
• Leading the Top 100: With this strong rebound, PENGU has become the top riser among the Top 100 Crypto Assets by market capitalization. Its current market value ranking has jumped to 89th place.
• Market cap returns to the billion-dollar mark: Particularly important is that the market capitalization of PENGU’s Crypto Assets has successfully reclaimed the critical psychological level of 1 billion USD, which strongly demonstrates the significant return of investor confidence in the market.

Core Catalyst: Spot PENGU ETF Application Officially Confirmed by SEC The core driving force behind this price surge comes from significant regulatory progress: the U.S. Securities and Exchange Commission (SEC) has officially confirmed receipt of the proposed Canary spot PENGU ETF application documents.

• Unique Asset Allocation: This ETF plans to allocate 80-95% of its assets to PENGU Token, while allocating 5-15% to Pudgy Penguins NFT. This structure aims to provide investors with the opportunity to access both PENGU Token and the broader Pudgy Penguins IP ecosystem behind it.
• First Step in Regulatory Process: The formal confirmation by regulatory agencies of the application is often seen as a strong bullish signal, as it marks a crucial first step in the lengthy ETF approval process, raising expectations for future approvals.

On-chain data supports the bullish narrative Multiple key on-chain analysis indicators further strengthened the market’s optimistic sentiment:

• Whales continue to accumulate: In the past month, large holders of crypto assets with significant amounts of PENGU have increased their holdings by 21%. Currently, these whale addresses control a total of up to 2.18 billion PENGU Tokens. Notably, some of the accumulation occurred during the recent price pullback, indicating that savvy investors and long-term holders are gaining confidence in its long-term value.
• Exchange Supply Sharply Decreased: Meanwhile, the circulating supply of PENGU available for trading on cryptocurrency exchanges has shown a significant decline. Data shows that its exchange reserves have decreased from 15.6 billion coins on June 12 to 14.3 billion coins this week (a reduction of about 1.3 billion coins). This phenomenon of tokens flowing out of exchanges is often interpreted as a bullish signal, as it indicates a potential reduction in selling pressure, with more tokens likely being transferred to cold wallets or used for long-term storage, reflecting a mindset of holding coins in anticipation of a rise.
• ****Derivatives sentiment warming up: ** **Data from CoinGlass provides another positive signal: the weighted funding rate of PENGU on the Crypto Assets derivatives exchange has turned positive for the first time since July 1. A positive funding rate means that traders holding long positions need to pay fees to traders holding short positions. This usually marks the return of bullish sentiment in the market and an increase in market participants’ demand to leverage long on PENGU.

Technical Analysis: Cup and Handle pattern has broken out, target price $0.0318? The daily chart of PENGU clearly shows a classic cup and handle pattern — a historically reliable bullish continuation pattern.

• Pattern Analysis: The price of this Token hit a low of $0.0037 in March (cup bottom), then rebounded and reached a local high of $0.0175 in May (cup edge), forming a rounded bottom (cup body). After that, it experienced a brief consolidation phase, forming the “Handle” of the pattern.
• Key Breakthrough: The core feature of this pattern consists of two parts: the “cup” (initial decline and recovery) and the “handle” (smaller, shallower pullback). The PENGU price has successfully broken through the neckline resistance level of this pattern. This technical breakthrough is often seen as a signal for a potential pump to start.
• Target Calculation: By measuring the vertical distance between the resistance level at the cup’s rim (approximately $0.0175) and the March low ($0.0037) (breakthrough amplitude of approximately 79%), and applying this amplitude to the neckline breakout point (around $0.0175 area), a potential upward target can be estimated to be around $0.0318 USD.
• Potential Gains and Risks: If this target price is reached, it means there is about 75% pump potential from the current level. However, this bullish technical forecast is contingent upon the price holding above the key support level $0.0142. If the price falls below this support, the bullish pattern may fail.
• Historical High Space: It is worth noting that even after the breakout, the current price of PENGU (at the time of writing this article) is still far below its historical high of $0.06845 set in December 2024. This suggests that if the current Crypto Assets bull market and bullish momentum continue, this Token still has huge potential upside space in the future.