Peanut the Squirrel (PNUT), a Solana-based memecoin inspired by a pet squirrel, has been making headlines in the cryptocurrency space. Despite an initial surge, the small-cap project, with a fully diluted valuation of $683 million and a 24-hour trading volume of $1.1 billion, has seen its price drop by over 50% in the past two weeks, trading around $0.68 as of December 23, 2024.
PNUT’s rise to prominence was fueled by an impressive rally during and after the U.S. 2024 elections, but the altcoin’s momentum has recently stalled. The broader cryptocurrency market, which is still reeling from Bitcoin’s correction, has cast a shadow over altcoins, driving Bitcoin dominance above 58%. This market downturn has led to further pressure on the price of PNUT, which has failed to maintain its previous bullish trajectory.
The Appeal of PNUT and Its Fundamentals
PNUT has attracted significant attention from speculative traders, largely due to its recent listings on major exchanges like Binance and Coinbase. These listings have contributed to its liquidity, with over 78,000 on-chain holders and a locked liquidity pool exceeding $12 million. The influx of exchange listings has helped solidify PNUT’s position in the market, making it one of the most highly liquid memecoins in circulation.
However, the memecoin’s growth has been marred by legal issues. Mark Longo, the former owner of the pet squirrel Peanut, recently issued cease-and-desist letters to Binance and Coinbase, accusing them of using his pet’s image without permission. Longo, who has been associated with several controversial projects, is also facing allegations of being a memecoin scammer, further complicating PNUT’s reputation.
now $PNUT is back to interesting levels. 👀
— 💎GEM INSIDER💎 (@gem_insider) December 23, 2024
this one should pump to ATHs from here.
bookmark this fam. https://t.co/Ufcvm7d4rD pic.twitter.com/cbUgRTuAp5
What’s Next for PNUT?
After a significant drop of over 71% from its peak above $2.4 last month, PNUT is now testing a critical support level at the 0.618 Fibonacci extension. On the four-hour chart, the price is forming a potential double bottom pattern, signaling the possibility of a reversal. Coupled with a rising divergence on the daily Relative Strength Index (RSI), there is hope that PNUT could see a recovery in the event of a broader bullish sentiment in the cryptocurrency market.
If market conditions improve, PNUT could rally toward the $1 mark, potentially setting the stage for a new all-time high (ATH). However, much depends on how the ongoing legal issues and market trends unfold in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Peanut the Squirrel vs. Binance: Trademark Battle Heats Up Over PNUT Token and IP Rights
About The Author
