PNUT price has dropped more than 20% in the past 24 hours, following its recent surge after listing on major exchanges, reaching $2.28. This sharp drop highlights the weakness in momentum, as indicators like ADX and RSI suggest that the uptrend is fading.
However, PNUT still has the potential for a strong recovery if buyers return. However, if the downward pressure continues, PNUT could face a major correction, testing key support levels and potentially losing more ground.
PNUT's current uptrend is fading.
PNUT currently has an ADX of 18.76, a significant drop from above 50 just a few days ago. This continued decline in ADX suggests that the strength of PNUT’s uptrend may be steadily weakening.
Although still in an uptrend, the sharp price drop over the past 24 hours highlights the growing weakness in maintaining the upward momentum. ADX suggests that a potential reversal may be on the horizon.
ADX measures the strength of a trend, with values above 25 indicating a strong trend and below 20 indicating a weak or non-existent trend.
PNUT’s ADX dropping below 20 reflects a weakening trend, although the current directional movement is still bullish. If the strength of this trend continues to deteriorate, PNUT may struggle to maintain its upward trend. This would leave PNUT price vulnerable to a more significant reversal in the near term.
PNUT is approaching the oversold zone.
PNUT currently has an RSI of 32.6, which is its lowest level since its listing on Binance.
The Relative Strength Index (RSI) measures the speed and magnitude of price movements, with values above 70 indicating overbought conditions and below 30 indicating oversold levels.
The continued decline in PNUT’s RSI over the past few days highlights the weakening momentum, with the asset now approaching oversold levels.
If the RSI drops below 30, it could indicate that PNUT is significantly undervalued in the short term. However, negative sentiment could continue to keep the price under pressure, delaying any recovery.
PNUT Price Prediction: Is 72% Correction Coming?
If PNUT price sees a reversal and a strong downtrend emerges, it may test the support at $0.749. If this level fails to hold, the price may drop further to $0.41 and even $0.32, indicating a potential major correction of up to 72%. This will see PNUT surpass other meme coins like MOG, GOAT, and MEW in terms of market cap.
Such a scenario would indicate increased downward pressure, with traders likely to continue exiting positions after the rallies following listings on major exchanges.
On the other hand, if the PNUT bullish trend regains its strength, the price may rise to test the resistances at $1.87 and $2.21.
A breakout of these levels could allow PNUT to retest its all-time high of $2.50. This would offer a potential upside of 111% and put PNUT among the top 10 meme coins in the market.
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