The price of Solana-based memecoin Peanut the Squirrel (PNUT) has dropped double digits as the market’s memecoin mania dies down. PNUT is trading at $1.09 at the time of writing, having lost 36% of its value over the past seven days.
As bearish pressure strengthens, PNUT price could revisit its all-time low of $0.031. This analysis explores why.
Peanut the Squirrel loses bullish support
An examination of the 12-hour chart of PNUT/USD confirms the memecoin’s increased selling. For example, at the time of writing, PNUT’s price is below the red line of its Super Trend indicator, which identifies the general direction and strength of an asset’s price trend.
This indicator appears as a line on the price chart, with its colors changing based on the direction of the trend: red for a downtrend and green for an uptrend. When the red line of the Super Trend indicator is above the asset's price, it signals a downtrend, suggesting that the bearish momentum will continue.
PNUT Super Trend. Font: TradingView
Additionally, PNUT’s declining Relative Strength Index (RSI) confirms the increase in selling activity. At press time, the memecoin’s RSI is below the neutral 50 line at 45.81.
This indicator measures the overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and may experience a correction. On the other hand, values below 30 indicate that the asset is oversold and may experience a recovery.
At 45.81, the PNUT RSI signals a gradual decline in buying activity, indicating the potential for a sustained price decline.
PNUT RSI. Font: TradingView
PNUT Price Forecast: All-Time Low on the Horizon
PNUT is currently trading at $1.09, just above the $0.97 support level. With the bullish sentiment weakening, the memecoin’s price is at risk of breaking this support and continuing its downward trajectory.
PNUT Price Analysis. Source: TradingView
According to PNUT’s Fibonacci retracement tool, the next significant support level is at $0.55. If this level fails to hold, the token could potentially revisit its all-time low of $0.03.
However, if the market sentiment changes from negative to positive, the PNUT memecoin price could rise towards $1.26, invalidating the bearish outlook.
The article PNUT falls 36% and may return to historic lows; understand was first seen on BeInCrypto Brasil.
