- Pudgy Penguins slips after 400% surge as SEC delays approval.
- Whale sell-offs and profit taking fuel correction in PENGU price.
- Key support at $0.025 could decide Pudgy Penguins’ next move.
Pudgy Penguins (PENGU) slipped more than 1 percent today to trade near $0.030, marking a sharp turn after its recent explosive gains. The turnaround comes after an almost 400 percent rally within a few days, but momentum has now slowed as selling pressure accumulates.
As crypto analyst Ali Martinez notes, the token chart still reflects the April to July trading configuration, during which sideways movement was preceded by another major rally. Martinez has observed that this stage may become a buy-the-dip purchase opportunity ahead of a prospective recovery.
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SEC Delay and Investor Pressure
The latest drop gained pace after the U.S. Securities and Exchange Commission postponed its decision on the Canary Spot Pengu ETF. The decision relegated the review to October 12, 2025, snuffing out hope and adding to a poorer mood.
Retail demand has been decelerating, and some early investors are cashing in profits along with regulatory uncertainty. The valuations against Solana hit record highs, making the case for further gains in the short term less obvious.
Also, the big holders have been selling to the market, leading to confusion in the key players’ confidence. This profit-taking wave has left PENGU about to grapple with firm levels after its explosive surge.
Support Levels in Focus
Over the past week, the token has remained up by around 2 percent, but the monthly performance shows a decline of more than 24 percent. This wider trend emphasizes the ability of support to hold in the following sessions.
At present, consolidation is taking place between $0.025 and $0.035, which is regarded as a key support area of the token. Analysts reckon that holding above this level would encourage another effort to reach $0.06 or $0.07.
Falling to less than $0.025, however, would jeopardize the bullish hopes and put PENGU under more downward pressure. Traders are keeping a close eye on whether the token can stabilise and gain traction towards a second leg up.
The slowdown in the SEC and the increase in sell-offs have left the PENGU in the middle of its support and dwindling interest. Before positioning themselves for an eventual recovery, the market participants will now seek indications of strength.
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