In the dynamic world of cryptocurrency, the Solana (SOL) based memecoin known as Peanut the Squirrel (PNUT) has emerged as a noteworthy player. This small-cap memecoin has garnered significant attention, boasting a fully diluted valuation of approximately $683 million. With a 24-hour average trading volume reaching about $1.1 billion, PNUT has captured the interest of investors and traders alike. However, recent market fluctuations have seen its value drop over 50% in the past two weeks, settling at around $0.68 as of Monday, December 23, 2024, during the mid-European session.
PNUT Market Performance and Influencing Factors
The initial surge in PNUT’s value was largely driven by the excitement surrounding the US 2024 elections. However, the momentum has slowed considerably in recent times. The broader cryptocurrency market has also been impacted by a correction in Bitcoin prices, which has instilled a sense of caution across altcoins, contributing to a recovery in BTC dominance, currently hovering above 58%.
PNUT Fundamentals
The PNUT memecoin has become a focal point for speculative trading, especially following its high-profile listings on major cryptocurrency exchanges. The token’s inclusion on platforms like Binance, which serves over 240 million users globally, and the subsequent listing on Coinbase Global Inc. (NASDAQ: COIN), have significantly boosted its liquidity. Currently, PNUT boasts a locked liquidity of over $12 million and has attracted more than 78k on-chain holders.
Despite its success, PNUT has encountered legal challenges. Mark Longo, known as the “squirrel dad,” has filed a legal complaint against Binance and Coinbase, alleging unauthorized use of his former pet’s image. This has led to some negative publicity, as Longo has faced accusations of being a memecoin scammer, particularly after his involvement in previous projects like Justice for Peanut (JFP).
Midterm Expectations
PNUT’s price has experienced a steep decline, dropping more than 71% from a peak above $2.4 last month. Currently, the token is testing a crucial support level around the 0.618 daily Fibonacci extension. On the four-hour chart, a potential double bottom formation is observed, along with a rising divergence on the daily Relative Strength Index (RSI).
Should the broader cryptocurrency market witness renewed bullish sentiment, PNUT’s price could rally back towards the $1 mark. Such a movement could pave the way for a new all-time high, offering investors a promising outlook.
In conclusion, while the PNUT memecoin has faced challenges, its significant market presence and potential for growth make it a cryptocurrency to watch. As market dynamics evolve, the performance of PNUT will be closely monitored by both investors and enthusiasts in the cryptocurrency community.
