Peanut the Squirrel (PNUT), a memecoin that recently surpassed a market cap of $2 billion, has experienced a sharp 30% drop in a week, dropping its value to $1.36.
However, emerging signs suggest that a recovery may be near.
Sentiment around PNUT could boost recovery
A key indicator that suggests a potential recovery in the PNUT is the Weighted Sentiment, which assesses market perception through social volume. A positive sentiment generally reflects bullish comments, often driving demand and price growth. Conversely, a negative sentiment signals pessimism in the market.
However, extreme readings in Weighted Sentiment can trigger counter-movements. For example, overly bullish sentiment can precede a price correction, while extreme negativity often sets the stage for a recovery.
According to data from Santiment, the Weighted Sentiment around the memecoin has fallen to an all-time low of 0.12. This sentiment suggests bearishness in the market, but its extremity could fuel what is known as a “hate rally,” where overwhelming negativity triggers an unexpected rally.
Peanut the Squirrel's Weighted Sentiment. Source: Santiment
Additionally, the Relative Strength Index (RSI) is another indicator that suggests that the memecoin’s value may recover some of its losses.
On the 1-hour chart, even though the indicator is below the midpoint of 50, the rating has increased since Wednesday (21). If this rating continues to rise, then PNUT may rise above $1.36.
RSI do Peanut the Squirrel. Fonte: TradingView
Price prediction
Looking at the same 1-hour timeframe, the trading volume around PNUT is on the rise. However, it is important to note that both buyers and sellers are still involved in the transaction of the token.
Still, it appears that bulls are defending the price at $1.31. If this continues successfully, then the price could rise to $1.64 in the short term. In a highly bullish situation, the recovery could see the price rise to $1.94.
Peanut the Squirrel 1-Hour Analysis. Source: TradingView
On the other hand, if selling pressure increases, this may not happen. Instead, the memecoin’s value could drop to $1.26 in the short term.
The article PNUT collapses, but recovery is still possible – Analysis was first seen on BeInCrypto Brasil.
