Peanut Squirrel [PNUT] rose rapidly earlier this month but has been falling steadily over the past week. The psychological levels of $1.5 and $1 are critical for traders - the former has been abandoned as support.
The sentiment across the cryptocurrency market is positive as Bitcoin [BTC] is trading at $97,000, just a stone’s throw away from $100,000. If Bitcoin rises further, this could put Peanut the Squirrel in a retracement phase in the coming days.
PNUT falls to 50% retracement level
On the 4-hour chart, PNUT is losing momentum. Bulls have been bravely defending the $1.5 area since November 14. The bears’ fierce attack continued throughout the week and succeeded in pushing the price down.
Fibonacci retracement levels outline that $1.29, $1, and $0.6 are key support levels for peanut meme buyers. The RSI on the 4-hour chart has fallen below the neutral 50 level, indicating that momentum favors the bears.
This could drop to $1 or even $0.6. OBV agrees with this conclusion. It cannot maintain above last week's lows. The decline in OBV highlights an increase in selling pressure and raises the likelihood of a pullback to $1.
The speculative market is facing short-term bearishness.
Over the past week, spot CVD has continued to decline, indicating that demand in the spot market is weakening. This finding supports the findings of OBV, suggesting that short-term preferences favor sellers.
The funding rate has been declining, and over the past four days, open interest has slowly decreased from $318 million to $261 million.
Overall, they indicate that bullish sentiment has decreased in lower time frames. Slow but steady PNUT losses mean that speculators are not eager to go long, even as Bitcoin approaches the $100,000 mark.
