Peanut The Squirrel (PNUT) Crypto Crashes After Elon Musk FOMO Exhaustion.
NOIDA (CoinChapter.com) — Peanut the Squirrel (PNUT) launched in Nov. 2024, securing attention after its listing on major exchanges. The token’s price soared to an all-time high of $2.47, fueled by speculative trading and the broader appeal of meme tokens.
PNUT’s branding capitalized on internet culture, drawing comparisons to other meme coins that rely on hype-driven rallies. However, the initial excitement fizzled out quickly. Within 48 hours of reaching its peak, PNUT’s price plunged 38%, signaling a lack of sustainable interest.
The volatility highlights the risks associated with projects that rely on celebrity endorsements and speculative market activity to drive value.
Musk’s FOMO Effect: A Diminishing Force?
Elon Musk’s influence on cryptocurrency markets has been a defining factor for meme tokens, and PNUT was no exception. The token initially gained from Musk’s tangential nods to meme culture, sparking speculative trading activity. Yet, the once-powerful “Musk FOMO” effect appears to be fading.
Elon Musk’s first tweet about the PNUT token generated massive hype for the project.
After its record-high price of $2.47, PNUT plummeted to $1.53, marking a 38% loss in less than two days. This correction reflects a broader pattern among meme coins that rely heavily on Musk-driven momentum. Speculative traders often exit quickly, leaving retail investors to face significant losses.
The fading Musk FOMO can be attributed to three factors. First, market participants increasingly prioritize assets with stronger fundamentals as the cryptocurrency market matures. Second, Musk’s repeated influence on meme tokens has diluted its novelty.
Lastly, the spotlight has shifted to larger cryptocurrencies like Bitcoin, which recently hit record highs, diverting attention from speculative assets.
Another tweet from the Tesla CEO on Nov. 13 saw the billionaire repost a tweet featuring a squirrel in medieval armor. The hype is seemingly dying down now, evident from PNUT price action.
PNUT Prices Tempering Down
The PNUT token price restarted its rally on Nov. 15 after a brief downtrend early in the day. The token again briefly broke above $2 with a near 30% spike in the day. However, the Peanut The Squirrel crypto token failed to hold above the price mark.
PNUT USD daily price chart. Source: Tradingview
In the absence of any hype, the PNUT price action will likely reverse its uptrend soon. Moreover, data from Coinglass shows that the funding rate for the Peanut The Squirrel token is declining. The funding rate decline suggests traders are likely opening more short positions in anticipation of an upcoming reversal.
If the PNUT price reverses its trend, the token will likely test the support levels near $1.5 and $1. On the other hand, a continued uptrend from here would see the Peanut The Squirrel token price face resistance near $2.2.
Breaking and consolidating above the immediate resistance could help the PNUT token rally to the resistance near $2.61 before correcting.
The post Peanut The Squirrel (PNUT) Crypto Crashes After Elon Musk FOMO Exhaustion appeared first on CoinChapter.
