Memecoins like Peanut the Squirrel (PNUT) are always highly volatile and heavily depend on market sentiment, the overall trend of cryptocurrencies, and other external factors. To assess PNUT's resilience, the following factors need to be considered:
1. Technical support
• The current Fibonacci level of 0.618 is an important support. If PNUT holds at this level and forms a double bottom pattern, the price could bounce back. However, if this level is broken, the downtrend will continue.
2. Market sentiment
• Bitcoin dominates the market with over 58% market capitalization, leading to weakness in altcoins and memecoins. If Bitcoin recovers, PNUT may receive support. Conversely, if the downtrend continues, PNUT will face significant pressure.
3. Legal factors
• The lawsuit related to the image of 'dad squirrel' Mark Longo and past fraud allegations are significant risks. If not resolved, it could create negative sentiment towards PNUT and reduce investor confidence.
4. Liquidity and number of investors
• With over 78,000 wallet holders and 12 million USD in locked liquidity, PNUT still has a large community. This indicates that confidence in the project remains, despite recent heavy selling pressure.
5. Memecoin trends
• Memecoins often rely heavily on hype. If the overall trend of memecoins weakens or new projects emerge, attention towards PNUT may decrease significantly.
Short-term prediction:
• If PNUT maintains the Fibonacci support level of 0.618 and the cryptocurrency market recovers overall, the target of 1 USD is feasible. However, any negative news related to the lawsuit or the broader market could push the price lower.
Conclusion:
PNUT has the potential to recover under favorable market conditions and resolve legal issues. However, investors should exercise caution as memecoins carry high risks. If you hold PNUT, closely monitoring the market and considering taking profits when the price reaches expected levels is essential.