PNUT Price Falls 30% in One Week, Yet Path to Recovery Remains Possible
PNUT’s 30% price drop might soon reverse as extreme bearish sentiment and rising RSI hint at recovery. Could PNUT rally to $1.64, or will selling pressure push it lower?
Peanut the Squirrel (PNUT), the meme coin that recently surpassed a $2 billion market cap, has experienced a sharp 30% price drop in the past week, bringing its value down to $1.36. However, emerging signals suggest that PNUT’s recovery might be just around the corner.
While some traders may wait for further discounts, this analysis indicates that the opportunity to buy at these lower levels could be closing fast.
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.
However, extreme readings in Weighted Sentiment can trigger contrarian moves. For instance, overly bullish sentiment might precede a price correction, while extreme negativity often sets the stage for a rebound.
According to Santiment data, PNUT’s Weighted Sentiment has plunged to a historic low of 0.12. This deeply bearish sentiment suggests market pessimism, but its extremity could fuel what’s known as a “hated rally,” where overwhelming negativity ignites an unexpected recovery.
Peanut the Squirrel Weighted Sentiment. Source: SantimentFurther, the Relative Strength Index (RSI) is another indicator suggesting that the Solana meme coin’s value could erase part of its losses. The RSI is a technical oscillator that uses the speed and size of price changes to measure momentum. When the reading drops, the momentum is bearish. Conversely, if the RSI reading rises, the momentum is bullish.
On the 1-hour chart, even though the indicator is below the 50.00 midpoint, the rating has increased from yesterday. Should this rating continue to surge, then PNUT’s price might rise higher than $1.36.
Peanut the Squirrel RSI. Source: TradingViewPNUT Price Prediction: Rally Toward $1.94 Begins
Looking at the same 1-hour timeframe, BeInCrypto observed that the trading volume around PNUT has increased. However, it is important to note that both buyers and sellers are still involved in transacting the token.
Still, it appears that bulls are defending the price at $1.31. If this remains successful, then PNUT’s price could rally toward $1.64 in the short term. In a highly bullish situation, PNUT recovery could see the price climb to $1.94.
Peanut the Squirrel 1-Hour Analysis. Source: TradingViewOn the other hand, if selling pressure increases, this might not happen. Instead, the meme coin’s value could drop to $1.26 in the short term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Grayscale Adds XRP, Solana, Stellar to Private Placement Trusts
Cardano Network Activity Hits 2023 Highs: Is $1.5 ADA Possible?
Chill Guy (CHILLGUY): The Meme Coin That’s All About Taking It Easy
What is Chill Guy (CHILLGUY)? Chill Guy (CHILLGUY) is a meme coin on Solana that embodies the spirit of calmness and simplicity. The meme coin is inspired by a viral meme of a relaxed, low-key dog. It’s a meme that has taken the internet by storm, celebrating the art of not worrying. The character
MARA urges US to lead Bitcoin hash rate for sovereignty