PNUT cryptocurrency surged 60% in 24 hours, but experts warn against a fall
PNUT's rebound was too strong, and it may need to take a break.
PNUT, a meme token, has been very popular recently. It has increased 16 times in a month, more than 5 times in a week, and 60% in 24 hours! But now, it has to find a place to slow down and prepare for the next sprint.
AMBCrypto's analysis said that PNUT may enter a period of adjustment, and it should stop rising first and accumulate strength.
PNUT shows signs of decline
Look, on the 15-minute chart, PNUT's trend seems to be falling. The bearish Doji candlestick is a precursor to the decline.
When the Doji candlestick appears, it often means that the price has reached the top, sellers begin to increase, and buyers are waiting for a low price to buy. This means that traders intend to push the price down and find a suitable price to take over.
If it really falls, PNUT may return to the range of 0.7 to 0.65, where there are many buyers and they can take it up, and it may rebound by more than 40%.
Technical indicators also point to a decline
Looking at the technical indicators again, PNUT will have a short-term correction. Both the balance of power (BoP) and the Chaikin fund flow (CMF) show that sellers are beginning to gain the upper hand.
Although BoP is still positive, it has gone down, indicating that although there are still people buying, if the decline continues, the price will have to fall, and we have to find the demand area.
CMF also shows that less money has flowed into PNUT. Once liquidity is reduced, the price pressure will be greater, and it will have to fall again before rebounding.
More and more shorts
Coinglass data says that there are more people who are short PNUT than those who are long, and the ratio of shorts to longs is almost 1:1. Although the difference is not big, it is obvious that there are fewer buyers.
Technical indicators and market sentiment do not support PNUT to continue to rise. It seems that the buying momentum is weak, and the price will have to fall again in the short term.
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