Recently, PENGU's performance has been quite hot. The stock price surged 19% within a week, not only leaving behind other meme coins like Dogecoin and Shiba Inu but also showing promising technical indicators.

Many traders have been eyeing this wave of momentum. Altcoin Sherpa detected signals of a reversal pattern, and MacroCRG followed up with a buy confirmation. Kook Capital also spoke from the perspective of brand storytelling, believing that the project itself has strong narrative support, and this breakout has already gained momentum, with a chance to hit a new all-time high.

Everything seems very optimistic? Not so fast. Analyst aixbt poured cold water—PENGU's price-to-earnings ratio appears high compared to traditional company standards, indicating valuation risks. Even more concerning, the U.S. Securities and Exchange Commission recently paused applications for hybrid ETF based on NFT assets, saying they need more time to consider the matter.

While the market is hot, it's still important to consider these risk points before entering.