In this week's meme coin analysis, BeInCrypto observed that these tokens showed mixed results. While some tokens saw gains, others experienced significant losses.
Peanut the Squirrel (PNUT) and AI-generated Goatseus Maximus (GOAT) were among the underperforming coins this week, with both experiencing substantial price declines. In contrast, Bonk (BONK) bucked the market trend and emerged as one of the top-performing cryptocurrencies. Here's a detailed summary of the week's developments.
Peanut (PNUT)
As of the start of the week, the price of PNUT was $1.94. However, the value of the meme coin has since decreased by 33%. This significant drop may be due to selling pressure from those who held the token until it reached its all-time high.
The current price of PNUT is $1.17. However, the 1-hour chart shows the Relative Strength Index (RSI) has fallen to 31.66. An RSI above 70.00 indicates the asset is overbought, while below 30.00 suggests it is oversold. Therefore, the RSI reading indicates a downtrend, but PNUT is in oversold territory.
As such, the meme coin's price has the potential to rebound. If validated, PNUT could bounce back to $1.40. In a very bullish scenario, the meme coin could rise to $1.72. However, if selling pressure increases again, the price could fall below $1.15 by the time of the next meme coin weekly update.
Goatseus Maximus (GOAT)
Similar to PNUT, another meme coin, GOAT, also experienced a sharp decline this week, with its price dropping by 22%.
GOAT's price has fallen to $0.87, which may be due to waning interest in AI-themed meme coins. The changing narrative in the meme coin market suggests that some traders are moving away from the AI hype to seek other opportunities.
Adding to the downward momentum, GOAT's 4-hour chart shows a head and shoulders pattern, a typical indicator of a bullish-to-bearish reversal. This formation suggests that the meme coin could experience further declines.
If the pattern materializes and is combined with a negative Moving Average Convergence Divergence (MACD), GOAT's price could drop to $0.66. However, if buying pressure increases, this bias could be invalidated, and the price could rise to $1.37.
Bonk (BONK)
In contrast to the performance of GOAT and PNUT, Bonk's price has increased by 28%. This price surge is due to the project's announcement on December 25th that it will burn 1 trillion tokens.
This announcement has generated excitement in the Solana meme coin community, increasing demand and value for the token. However, BONK has faced resistance at $0.000050, making it difficult for the cryptocurrency to climb higher.
Nevertheless, the Bull Bear Power (BBP) indicates that the bears are still unable to take control. If this continues, BONK's price could move to $0.000060.
Conversely, if the bears overtake the bulls, the price could drop to $0.000043 in the next meme coin weekly analysis.
