PNUT, the meme coin that recently surpassed a market capitalization of $200 million, plummeted by 30% last week, dropping to $1.36. However, new signals suggest that a recovery for PNUT may be imminent.
While some traders may be waiting for further discounts, this analysis indicates that buying opportunities at these low levels may quickly close.
PNUT's Investor Sentiment Deteriorates... Can It Bounce Back?
One of the key indicators suggesting a potential PNUT recovery is the weighted sentiment, which evaluates market perception through social media volume. Positive sentiment generally reflects bullish market commentary, driving increased demand and price appreciation. Conversely, negative sentiment indicates bearish sentiment across the market.
However, extreme readings in weighted sentiment can trigger movements in the opposite direction. For example, overly bullish sentiment can precede price corrections, and extreme negativity can set the stage for a rebound.
According to sentiment data, PNUT's weighted sentiment has dropped to 0.12, a historical low. This deep bearish sentiment suggests market pessimism, but its extremity can also fuel an "oversold rally" that triggers an unexpected recovery.
Additionally, the Relative Strength Index (RSI) is another indicator suggesting that the value of the Solana meme coin could recover some of its losses. RSI is a technical measurement that uses the speed and magnitude of price changes to measure momentum.
When readings fall, momentum is bearish. Conversely, when RSI readings rise, momentum is bullish.
On the 1-hour chart, the indicator is below the 50.00 midpoint, but the rating has increased from yesterday. If this rating continues to rise, PNUT's price could move above $1.36.
PNUT Price Prediction: Defending the $1.31 Price Level is Key
Looking at the same 1-hour timeframe, BeInCrypto has observed an increase in trading volume around PNUT. However, it should be noted that both buyers and sellers are still actively participating in token trading.
Nevertheless, it appears that the bulls are defending the price at $1.31. If this is successfully maintained, PNUT's price could rise to $1.64 in the short term. In a very bullish scenario, a PNUT recovery could push the price up to $1.94.
However, if selling pressure increases, this may not occur. Instead, the value of the meme coin could drop to $1.26 in the short term.
