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The price of the Meme Coin on the Solana platform, Peanut the Squirrel (PNUT), has dropped by double digits as the Meme Coin frenzy in the market gradually subsides. PNUT is currently trading at $1.09, having lost 36% of its value in the past seven days.
With the strong increase in selling pressure, PNUT’s price could return to its record low of 0.031 USD. This analysis will show why that might happen.
Peanut the Squirrel Loses Its Growth Support
A review of the PNUT/USD chart on the 12-hour timeframe shows an increase in the cryptocurrency’s sell-offs. For example, as of this writing, the price of PNUT is below the red line of the Super Trend indicator, which determines the direction and strength of asset price trends.
This indicator appears as a line on the price chart, with the color 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 price, it signals a downtrend, suggesting that selling pressure will continue.
Additionally, PNUT’s Relative Strength Index (RSI) is falling indicating an increase in selling activity. At the time of writing, the currency’s RSI is below the 50 level, sitting at 45.81.
This indicator measures the overbought or oversold conditions of the asset market. Between 0 and 100, values ​​above 70 signal that the asset is overbought and could undergo a correction. Conversely, values ​​below 30 indicate the asset is oversold and could undergo a recovery.
At 45.81, PNUT’s RSI indicates a gradual decline in buying activity, demonstrating the possibility of a prolonged decline in prices.
PNUT Price Forecast: Record lows ahead
Currently, PNUT trades at 1.09 USD, slightly above the support level of 0.97 USD. With bullish sentiment waning, the price of this Meme Coin is at risk of breaking support and continuing its downtrend.
According to PNUT’s Fibonacci retracement tool, the next key support level lies at $0.55. If this level fails to hold, the Token could return to its record low of $0.03.
However, if the market sentiment turns from negative to positive, the price of Meme Coin PNUT could rise to $1.26, nullifying this negative forecast.
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