The price of the meme coin based on Solana Peanut the Squirrel (PNUT) has dropped double digits as the meme coin craze in the market fades. PNUT is trading at $1.09 at the time of writing, down 36% in value over the past seven days.
With strong bearish pressure, the price of PNUT might return to its all-time low of $0.031. This analysis delves into the reasons why.
Peanut the Squirrel loses bullish support
The 12-hour chart analysis of PNUT / USD confirms an increase in sell-offs of the meme coin. For instance, at the time of writing this, the price of PNUT is below the red line of the Super Trend indicator, determining the overall direction and strength of the asset's price trend.
This indicator appears as a line on the price chart, with its color changing based on the trend direction: red for downtrend and green for uptrend. When the red line of the Super Trend indicator is above the asset's price, it signals a downtrend, suggesting that the downward momentum will continue.
PNUT Super Trend. Source: TradingView
Additionally, the Relative Strength Index (RSI) of PNUT confirms an increase in selling activity. At the time of writing, the RSI of the meme coin is below the neutral line of 50 at 45.81.
This indicator measures the overbought and oversold market conditions of the asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and due for a correction. Conversely, values below 30 indicate that the asset is oversold and may recover.
At 45.81, the RSI of PNUT signals decreasing buying activity, indicating the potential for sustained price declines.
PNUT RSI. Source: TradingView
PNUT Price Prediction: All-Time Low on the Horizon
PNUT is currently trading at $1.09, just above the support level of $0.97. With bullish sentiment fading, the price of the meme coin risks breaking this support and continuing its downward trajectory.
PNUT Price Analysis. Source: TradingView
According to the Fibonacci retracement tool of PNUT, the next key support level is $0.55. If this level cannot be held, the token is likely to revert to its all-time low of $0.03.
However, if market sentiment shifts from negative to positive, the price of the meme coin PNUT could rise to $1.26, invalidating the bearish outlook.