PNUT Price Drops 20%, Momentum Weakens Amid Bearish Pressure

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As a seasoned crypto investor with battle-scarred fingers from navigating through numerous bull and bear markets, I can’t help but feel a sense of deja vu observing PNUT‘s current price action. The 20% drop within 24 hours is a stark reminder of the rollercoaster ride that comes with investing in crypto.

The cost of PNUT has dropped by over 20% in the last 24 hours, a significant drop after its recent rise following its listing on prominent exchanges where it peaked at $2.28. This steep fall suggests a weakening trend, as technical indicators such as ADX and RSI point towards a dwindling uptrend.

Even with its current situation, there’s a chance that PNUT can bounce back robustly should buyers re-emerge. Conversely, if the selling pressure persists, PNUT might experience a substantial adjustment, challenging crucial support zones and possibly sliding further.

PNUT Current Uptrend Is Fading Away

Currently, the ADX (Average Directional Movement Index) of PNUT stands at 18.76, which is noticeably lower than the values above 50 it held a few days back. This persistent drop in ADX suggests that the momentum behind PNUT’s upward trend has been gradually diminishing.

Even though the market is currently rising, the significant decrease in value during the past day underscores the increasing fragility of continuing the ascent. The Average Directional Index (ADX) hints at a possible shift in direction, indicating a potential upcoming downturn.

The ADX (Average Directional Movement Index) quantifies the intensity of a market trend. A reading higher than 25 signifies a robust trend, whereas a value lower than 20 suggests a weak or non-existent trend.

When PNUT’s ADX falls below 20, it indicates a weakening momentum in the trend, despite the fact that the current movement remains bullish. If this weak trend continues to decline, PNUT might find it challenging to maintain its upward trajectory. This could make PNUT vulnerable to a potential significant reversal in the short term.

PNUT Is Almost Reaching The Oversold Zone

PNUT currently has an RSI of 32.6, marking its lowest level since being listed on Binance.

In simpler terms, the Relative Strength Index (RSI) evaluates how quickly a stock’s price is changing and how much it’s moving up or down. When the RSI goes beyond 70, it suggests the stock might be overbought, meaning it has risen too rapidly and may soon experience a downturn. Conversely, when the RSI falls below 30, it could signal that the stock is oversold, implying it may be undervalued and ready for an upward trend.

Over the last several days, a persistent drop in PNUT’s Relative Strength Index (RSI) indicates that its momentum is becoming less strong. The asset is currently approaching levels suggesting it may be overbought.

If the Relative Strength Index (RSI) drops below 30 for PNUT, this might suggest a temporary undervaluation. Yet, persistent negative feelings among investors may keep the price low, potentially postponing any potential increase.

PNUT Price Prediction: A 72% Correction Ahead?

As a crypto investor, if the price of PNUT takes a turn and a substantial downtrend sets in, it might challenge the support at $0.749. If this level doesn’t manage to hold its ground, the price could plummet to $0.41, with potential further drops to $0.32. This downturn could represent a significant correction of approximately 72%. Such a decline might allow other meme coins like MOG, GOAT, and MEW to outrank PNUT in terms of market capitalization.

As a crypto investor, I might interpret such a situation as an escalating bearish trend, possibly leading more traders to liquidate their holdings following the market upticks post-exchange listings.

Conversely, should the upward trend for PNUT regain its momentum, it might push the price upwards to challenge the resistance levels at $1.87 and potentially even $2.21.

Advancing past these stages might provide an opportunity for PNUT to challenge its former peak value of $2.50 once more. This scenario could present a possible return of 111%, making PNUT a leading contender among the top 10 meme coins in the current market.

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2024-11-22 20:07