Peanut the Squirrel (PNUT) has lost 30% of its value over the past week, despite recently surpassing a $2 billion market cap.
PNUT, one of the memecoins that has attracted great attention recently, reached a market value of $ 2 billion, supported by Elon Musk’s social media posts. However, it faced selling pressure after it started trading on exchanges. Still, some indicators indicate that this popular memecoin may have the potential to recover.
A key indicator of PNUT’s chances of recovery is the Weighted Sentiment data, which measures market sentiment. Generally, positive sentiment indicates price growth and increased demand, while negative sentiment suggests bearish expectations. However, excessively high levels in Weighted Sentiment can often trigger reversals. For example, excessively positive sentiment can precede a price correction, while excessive negativity can often be a precursor to an uptrend. According to Santiment data, PNUT’s Weighted Sentiment has fallen to its lowest level at 0.12, signaling that the pair may soon experience a recovery.
On the 1-hour timeframe, it was observed that the trading volume on PNUT increased, but selling trades are still dominant. For now, the bulls are trying to defend $1.30. If they manage to hold this level, the memecoin's price could rise to $1.64 in the short term. If the upward movement continues, a target of $1.94 is also possible. However, if the selling pressure continues, the support level to watch is $1.26.