The meme coin Peanut the Squirrel (PNUT), which recently surpassed a market capitalization of $2 billion, experienced a sharp 30% decline in one week, bringing its value down to $1.36. However, there are signs that PNUT could soon begin to recover.
Despite the bearish trend, current low prices may present an attractive opportunity for investors expecting a turnaround.
Bearish Sentiment Could Trigger a Rebound
One of the key indicators suggesting potential growth for PNUT is the weighted sentiment, which measures market perception based on social activity. Positive sentiment often leads to increased demand and price growth, while negative sentiment signals the opposite trend.
Extreme sentiment values, however, often precede significant market reversals. Historically, overly bullish sentiment tends to lead to corrections, while extreme bearishness can set the stage for recovery.
According to data from Santiment, PNUT's weighted sentiment has reached a historic low of 0.12. This deeply bearish outlook could paradoxically spark a "relief rally," where strong market pessimism unexpectedly fuels a price rebound.
RSI Indicates Potential for a Reversal
Another indicator pointing to a possible recovery is the Relative Strength Index (RSI). This tool measures the momentum of price changes based on their speed and magnitude.
On the 1-hour chart, RSI remains below the mid-level of 50.00 but has been improving since yesterday. If this trend continues, PNUT’s price could climb back above $1.36.
PNUT Price Prediction: A Rise to $1.94 Is Possible
Based on the 1-hour chart, trading volume around PNUT is increasing. Both buyers and sellers remain actively engaged, suggesting a highly competitive market.
Currently, bulls are defending the $1.31 level. If they succeed in maintaining this support, PNUT's price could rise to $1.64 in the short term. In a strongly bullish scenario, the price could even reach $1.94.
On the other hand, if selling pressure intensifies, the price could drop to $1.26, signaling a continuation of the bearish trend.
Conclusion: PNUT is at a critical juncture. If bulls manage to hold current support levels, the coin could see a significant recovery. Conversely, losing this support might lead to further declines.
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