The price of the Meme Coin on the Solana platform, Peanut the Squirrel (PNUT), has dropped double digits as the hype around Meme Coins in the market gradually subsides. PNUT is currently trading at $1.09, losing 36% of its value over the past seven days.
With strong selling pressure increasing, the price of PNUT could revert to the record low of $0.031. This analysis will provide reasons why that may happen.
Peanut the Squirrel Loses Growth Support
An assessment of the PNUT/USD chart in the 12-hour time frame shows an increase in sell-offs of this cryptocurrency. For instance, as of the time of writing, the price of PNUT is below the red line of the Super Trend indicator, a tool that determines the direction and strength of the asset price trend.
This indicator currently appears as a line on the price chart, with colors changing based on the trend direction: red for a downtrend and green for an uptrend. When the red line of the Super Trend indicator is above the asset price, it signals a downtrend, suggesting that selling pressure will continue.
Super Trend of PNUT. Source: TradingView
Additionally, the Relative Strength Index (RSI) of PNUT is decreasing, indicating an increase in selling activity. At the time of writing, this cryptocurrency's RSI is below 50, standing at 45.81.
This indicator measures the overbought or oversold conditions of the asset market. On a scale from 0 to 100, values above 70 signal that the asset is overbought and may correct. Conversely, values below 30 indicate that the asset is oversold and may experience a recovery.
At 45.81, the RSI of PNUT indicates a gradual decline in buying activity, suggesting the potential for continued price decrease.
RSI of PNUT. Source: TradingView
PNUT Price Prediction: Record lows ahead
Currently, PNUT is trading at $1.09, slightly above the support level of $0.97. With bullish sentiment weakening, the price of this Meme Coin risks breaking the support level and continuing its downtrend.
PNUT Price Analysis. Source: TradingView
According to the Fibonacci retracement tool for PNUT, the next important support level is at $0.55. If this level does not hold, the Token may revert to the record low of $0.03.
However, if market sentiment shifts from negative to positive, the price of Meme Coin PNUT could rise to $1.26, negating this negative forecast.
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