Peanut the Squirrel (PNUT), the meme coin that recently surpassed a market capitalization of $2 billion, saw a steep 30% price drop over the past week, bringing its value down to $1.36. However, emerging signals suggest that the resumption of the PNUT may be imminent.
Although some traders may wait for further reductions, this analysis indicates that the opportunity to buy at these lower levels could shrink quickly.
Bearish Sentiment Around Peanut the Squirrel Could Fuel the Rebound
A key indicator hinting at a potential recovery of the PNUT is weighted sentiment, which gauges market perception using social volume. Positive sentiment generally reflects bullish comments in the market, often leading to increased demand and prices. Conversely, negative sentiment signals bearish sentiment in the overall market.
However, extreme readings of weighted sentiment can trigger contrarian moves. For example, an overly bullish sentiment could precede a price correctionwhile extreme negativity often paves the way for a rebound.
According to Santiment data, PNUT’s weighted sentiment plunged to an all-time low of 0.12. This deeply bearish sentiment suggests market pessimism, but its extremity could fuel what’s known as a “hate rally,” where overwhelming negativity triggers an unexpected rally.
Additionally, the relative strength index (ROI) is another indicator suggesting that the Solana coins meme the value could erase part of its losses. The RSI is a technical oscillator that uses the speed and magnitude of price changes to measure momentum. When the number falls, the momentum is bearish. Conversely, if the RSI increases, the momentum is bullish.
On the hourly chart, even though the indicator is below the midpoint of 50.00, the rating has increased compared to yesterday. If this rating continues to increase, then PNUT price could increase above $1.36.
PNUT Price Prediction: Rally Starts Towards $1.94
Looking at the same one-hour period, BeInCrypto observed that the trading volume around PNUT increased. However, it is important to note that buyers and sellers are still involved in the token transaction.
However, it appears that the bulls are defending the price at $1.31. If this continues to be successful, then PNUT price could rebound towards $1.64 in the short term. In a very bullish situation, the PNUT recovery could see the price rise to $1.94.
On the other hand, if selling pressure increases, this may not happen. Instead, the coins the value could drop to $1.26 in the short term.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.