PNUT Price Falls 30% in One Week, Yet Path to Recovery Remains Possible

As a seasoned researcher with over two decades of experience in the financial markets under my belt, I must admit that I’ve seen my fair share of market volatility and trends. However, the current situation of Peanut the Squirrel (PNUT) is particularly intriguing.


Peanut the Squirrel, the meme cryptocurrency that recently broke through a market value of $2 billion, has suffered a significant 30% price decline over the past week, lowering its worth to about $1.36. Nevertheless, early signs are indicating that Peanut’s recovery could be imminent.

Some traders might choose to hold off for even cheaper prices, but this analysis suggests that the window for purchasing at these reduced rates could be narrowing quickly.

Bearish Sentiment Around Peanut the Squirrel Could Fuel Bounce

One key indicator hinting at a potential PNUT recovery is the Weighted Sentiment, which evaluates market perception using social volume. A positive sentiment typically reflects bullish market commentary, often driving increased demand and price growth. Conversely, negative sentiment signals bearish sentiment across the market.

Conversely, exceptionally high or low readings on the Weighted Sentiment scale may lead to reversals in market trends. For example, overly optimistic sentiment could be followed by a decrease in prices, whereas extremely pessimistic sentiment usually precedes an upward movement.

Based on data from Santiment, the Weighted Sentiment for PNUT has dropped to an all-time low of 0.12. This extremely negative sentiment indicates widespread market pessimism. However, such intense bearishness might trigger a phenomenon known as a “hated rally,” where excessive negativity could lead to an unexpected market recovery.

Additionally, it’s worth noting that the Relative Strength Index (RSI), a technical tool which gauges momentum based on the rate and magnitude of price fluctuations, hints at the possibility of Solana’s meme coin regaining some of its lost value.

When the rate of reading decreases, the market trend becomes bearish. On the other hand, when the RSI reading increases, the market trend becomes bullish.

Despite the indicator being below the halfway mark on the one-hour graph, the rating has climbed up from yesterday’s level. If this trend persists and the rating keeps soaring, it could potentially drive the price of PNUT beyond $1.36.

PNUT Price Prediction: Rally Toward $1.94 Begins

On the same one-hour time scale, we noticed an uptick in trading activity for the PNUT token at BeInCrypto. It’s worth mentioning that both parties, buyers and sellers, have been actively participating in the exchange of this token.

Nevertheless, it seems that the bulls are holding the line at $1.31 for now. If they continue to be successful, then we might expect PNUT’s price to surge towards $1.64 in the near future. In an extremely optimistic scenario, where a strong recovery occurs, the price of PNUT could potentially reach as high as $1.94.

Conversely, if the demand for selling grows stronger, it’s possible that the value of the meme coin may not rise as anticipated. Instead, a decrease to around $1.26 could be seen in the immediate future.

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2024-11-21 12:02