Peanut the Squirrel (PNUT), a memecoin built on the Solana blockchain, has been making headlines within the cryptocurrency realm. Despite being a small-cap project, PNUT has garnered attention due to its fully diluted valuation of approximately $683 million and a robust 24-hour average trading volume hovering around $1.1 billion.
However, the memecoin has experienced a notable downturn, shedding more than 50% in value over the past two weeks. As of Monday, December 23, 2024, during the mid-European trading session, PNUT was priced at about $0.68. After a remarkable price surge during and post the US 2024 elections, its momentum has considerably waned. The broader cryptocurrency market, affected by a Bitcoin correction, has seen an uptick in BTC dominance, which now stands above 58%.
PNUT Fundamentals
In recent weeks, PNUT has captured the interest of speculative traders, largely due to its listings on prominent cryptocurrency exchanges. Following its successful debut on the Binance exchange, which boasts over 240 million users globally, PNUT has also been listed by Coinbase Global Inc. (NASDAQ: COIN). This strategic move has enhanced the coin’s liquidity, attracting over 78,000 on-chain holders.
Nevertheless, PNUT has encountered obstacles, including legal challenges from Mark Longo, known as the squirrel dad. Longo has issued a cease and desist notice to both Binance and Coinbase, alleging unauthorized use of his former pet’s image. Additionally, Longo faces accusations of involvement in memecoin scams, having allegedly orchestrated rug-pulls on various projects before advocating for Justice for Peanut (JFP).
Midterm Expectations
The price trajectory of PNUT has been turbulent, with the coin plummeting over 71% from its peak of $2.4 last month. Currently, PNUT is testing a critical support zone around the 0.618 Fibonacci retracement level on the daily chart. On a four-hour timeframe, the coin appears to be forming a potential double bottom, with a rising divergence noted on the daily Relative Strength Index (RSI).
Should positive sentiment return to the crypto markets, PNUT could potentially rally towards the $1 mark, thereby setting the stage for a surge towards a new all-time high. The memecoin’s future remains closely tied to market dynamics and broader crypto trends.
