Will PNUT, one of the most notable memecoins of recent times, find a chance to recover after its sharp decline?$PNUT
Solana-based memecoin Peanut the Squirrel (PNUT) has become a center of attention in the crypto world after taking its name from a squirrel. With a market cap of $683 million and a 24-hour trading volume of $1.1 billion, it quickly attracted the attention of investors. However, despite this rapid rise, it has worried investors by losing more than 50% in the last two weeks. So, what is the latest status of this popular memecoin?
PNUT had a strong rally following and after the 2024 US elections. However, with the declines in Bitcoin and Ethereum, interest in PNUT has started to wane. The current correction in Bitcoin’s price has negatively affected altcoins, pushing Bitcoin’s market dominance above 58%. This overall decline has particularly hit memecoins.
There are currently over 78,000 PNUT wallet holders and the token has over $12 million in locked liquidity. Many crypto investors, especially memecoin enthusiasts, are still hopeful about PNUT. However, it is also noteworthy that the project is facing serious legal issues. Mark Longo, known as the “squirrel dad,” sent a warning to Binance and Coinbase for using his pet’s image without permission. Longo was also accused of fraud due to “rug pull” allegations in previous memecoin projects and then started a new project called Justice for Peanut (JFP).
PNUT’s price is down over 71% from last month’s high of $2.40. It is currently testing the 0.618 Fibonacci retracement level on the daily chart, a key support level, while a potential double bottom formation is forming on the short-term four-hour chart.
The double bottom formation indicates the potential for the price to rise. With the recovery of the market, it may be possible to target the $1 level for PNUT. However, factors such as the continuation of legal issues, the weakening of the memecoin trend or the negative trend of the market may push the price even lower.
