PNUT fell 20% in 24 hours after hitting $2.28 on major exchanges. Indicators such as ADX and RSI point to a loss of bullishness.
Despite this, PNUT still has the potential for a strong recovery if buyers return. However, if selling pressure continues, the memecoin could face a significant correction, testing key support levels and potentially losing more ground.
Current uptrend is fading
PNUT currently has an ADX of 18.76, significantly lower than the 50 a few days ago. This consistent decline indicates that the trend strength has been steadily weakening.
Despite still being in an uptrend, the sharp drop in price over the last 24 hours highlights the growing vulnerability in maintaining the upward momentum. ADX suggests a possible reversal could be on the horizon.
PNUT ADX. Font: TradingView
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.
The ADX drop below 20 reflects a weakening trend, although the current directional movement is still bullish. If this trend strength continues to deteriorate, PNUT may struggle to sustain its uptrend. This would leave the price vulnerable to a more significant reversal in the near term.
RSI is almost reaching the oversold zone
Currently, PNUT’s RSI is at 32.6, marking its lowest level since being listed 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 signaling oversold levels.
PNUT RSI. Font: TradingView
The consistent decline in the RSI over the past few days highlights weakening momentum, with the asset now approaching oversold levels.
If the RSI drops below 30, it could signal that the memecoin is significantly undervalued in the short term. However, continued selling sentiment could keep the price under pressure, delaying any recovery.
PNUT Price Prediction: A 72% Correction Ahead?
If PNUT price experiences a reversal and a strong bearish trend emerges, it could test the support at $0.749. Should this level fail to hold, the price could drop further to $0.41 and even $0.32, marking a significant correction of up to 72%. This would see PNUT surpassed by other memecoins like MOG, GOAT, and MEW in terms of market cap.
Such a scenario would indicate a build-up of selling pressure, with traders possibly continuing to exit positions following increases in listings on major exchanges.
PNUT Price Analysis. Source: TradingView
On the other hand, if the PNUT uptrend regains strength, the price may rise to test the resistances at $1.87 and $2.21.
Surpassing these levels could allow PNUT to retest its previous all-time high of $2.50. This would offer 111% upside potential and establish the token as one of the top 10 memecoins in the market.
The article PNUT melts 20% and is at risk of new correction was first seen on BeInCrypto Brasil.
