The Solana (SOL) based memecoin inspired by a pet squirrel named Peanut the Squirrel (PNUT) continues to make waves in the cryptocurrency industry. The small memecoin project has a fully diluted valuation of around $683 million and a 24-hour average trading volume of around $1.1 billion, down more than 50% in two weeks, trading at around $0.68 during mid-European trading hours on Monday, December 23, 2024.
After an impressive rally during and after the 2024 US election, PNUT prices have slowed down significantly in recent times. Moreover, the ongoing Bitcoin correction has brought a bearish chill to the entire altcoin industry, causing BTC’s dominance to recover further, hovering above 58% at the time of writing.
PNUT Basics
The PNUT memecoin has gained significant attention from speculative traders in the past few weeks following its listing on major cryptocurrency exchanges. Following its successful listing on Binance, an exchange with over 240 million global users, Coinbase Global Inc. (NASDAQ: COIN) recently announced the listing of PNUT.
As a result, the extremely liquid memecoin has over $12 million in locked liquidity and attracted over 78,000 on-chain holders.
However, the PNUT memecoin is facing significant headwinds due to a legal action filed by Mark Longo, aka Squirrel Daddy. Recently, Longo sent a cease-and-desist letter to Binance and Coinbase, accusing them of using his former pet’s image without approval.
Longo, who has been accused of being a memecoin scammer, allegedly worked on several projects before launching Justice for Peanut (JFP).
Medium-term expectations
PNUT price has fallen more than 71% from last month’s high above $2.4 and is currently retesting critical support near the 0.618 daily Fibonacci Extension. On the four-hour timeframe, PNUT price has formed a potential double bottom, while there is a rising divergence on the daily relative strength index (RSI).
If the bullish sentiment on cryptocurrencies increases further, the price of PNUT could easily rise to $1 and set the stage for new highs.
