During Wednesday’s market session, the crypto market regained its bullish momentum as Bitcoin rebounded above $95,000. As investors hope to soon revive BTC for $100,000, the altcoin market has seen renewed buying pressure. Thus, the new Memecoin Peanut the Squirrel, based on Solana, hints at the formation of a $1 bottom and a potential reversal with a wedge pattern.
At press time, PNUT price was trading at $1.03, with an intraday loss of 4%. According to Coinmarketcapthe market capitalization of the asset stands at $1.039 billion, while that of $1.404 billion.
Highlights
- Peanut the Squirrel price is consolidating at $1, suggesting that buyers are actively defending this support.
- The formation of a falling wedge pattern signals a temporary pullback allowing buyers to regain momentum.
- PHUT price is 9% away from a major breakout of the current correction.
Peanut the squirrel hints at the end of the correction with a wedge pattern
The Cryptocurrency Meme Behind the Famous Eastern Gray Squirrel Peanut saw a notable correction at the second highest in November. The correction trend caused the price of PNUT to fall from $2.5 to $1.03, registering a loss of 58%.
The asset’s previous rally was driven by a combination of public outrage and pre-election enthusiasm following the New York Department of Environmental Conservation’s (DEC) decision to take Peanut the Squirrel before euthanizing him. Additionally, Tesla CEO Elon Musk’s tweets criticizing DEC’s actions further fueled demand for PNUTdriving up its price.
However, the broader market rally strengthened the meme wedge to move its downward trajectory above $1. Additionally, the current correction trend shows the formation of a falling wedge pattern narrowing the price between two converging trendlines.
Theoretically, this trend results in a temporary downtrend before the asset regains momentum for a major breakout.
PNUT price set for potential breakout
Peanut the Squirrel is currently trading at $1.04 and is 9% away from challenging key resistance in the corner. A potential breakout will better confirm the bottom formation and support buyers for the next jump.
The post-breakout rally could result in a 140% rally to challenge the $2.5 high. Additionally, the RSI momentum indicator supports the narrative of a new high formation in its slope, its recovery of bullish momentum.