PNUT is currently searching for a demand zone to move forward.
Technical indicators suggest a slight downturn, allowing the asset to stabilize before potential further gains.
The meme token PNUT has been one of the top-performing assets in recent weeks, with a remarkable 1,610.05% increase over the past month, a 561.21% rise in the last seven days, and a 60% surge just in the last 24 hours.
However, a new analysis from AMBCrypto suggests that PNUT may enter a period of consolidation and potentially pause its upward trend as it gathers momentum for the next phase of its rally.
Bearish Shift in PNUT with Doji Formation
At the time of writing, PNUT shows signs of a potential decline on the 15-minute chart, with the formation of a bearish Doji candlestick, indicating a possible downward movement.
A bearish Doji candlestick typically forms at a local price peak and suggests increasing selling pressure, as market participants prepare for a potential return to lower levels. This pattern signals that traders might be looking for an opportunity to push prices down into a key demand zone.
The expected dip could bring PNUT to the demand zone between $0.7010 and $0.6499, where sufficient liquidity could support a rebound. If PNUT reaches this level, it may bounce back with a potential gain of up to 41.19%.
Technical Indicators Point to a Temporary Drop for PNUT
Current technical indicators indicate a short-term bearish trend for PNUT. As of this writing, the Balance of Power (BoP) and Chaikin Money Flow (CMF) indicators reflect bearish signals.
The Balance of Power indicator, which helps traders gauge market control between buyers and sellers, is currently positive but shows a slight decline.
This modest drop suggests that while bullish sentiment remains, the price may decline if the downward trend persists, likely moving toward the previously identified demand level.
Similarly, the Chaikin Money Flow (CMF), which measures liquidity inflows and outflows, indicates a decreasing flow of funds into PNUT. This reduced liquidity could lead to further downward pressure before a potential recovery.
Growing Bearish Sentiment Among PNUT Market Participants
Data from Coinglass shows an increasing bearish sentiment toward PNUT, with more short positions than long positions currently open.
At the time of writing, the long-to-short ratio is 0.987, slightly favoring the bears, though the difference in the number of contracts remains small.
With most technical indicators pointing against a PNUT rally, it’s becoming clearer that buying pressure has weakened. This decrease in demand will likely contribute to further price drops in the short term.
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