Introduction to PNUT Memecoin
Solana (SOL) based memecoin, inspired by a beloved pet squirrel named Peanut, has been making notable strides in the cryptocurrency landscape. Known as Peanut the Squirrel (PNUT), this small-cap memecoin project boasts a fully diluted valuation of approximately $683 million and has achieved a 24-hour average trading volume close to $1.1 billion. However, it has experienced a sharp decline of over 50 percent in recent weeks, settling at around $0.68 on Monday, December 23, 2024, during the mid-European trading session.
The Market Dynamics of PNUT
Following an impressive rally during and after the US 2024 elections, the momentum of PNUT’s price has decelerated significantly. The broader cryptocurrency market correction, led by Bitcoin, has sent bearish signals across the altcoin sector, contributing to an increase in Bitcoin’s market dominance, which now hovers above 58 percent.
PNUT Fundamentals
PNUT has garnered considerable interest from speculative traders recently, primarily due to its listing on major cryptocurrency exchanges. The successful addition of PNUT on the Binance exchange, which serves over 240 million global users, was followed by an announcement from Coinbase Global Inc. (NASDAQ: COIN) regarding its own PNUT listing. This highly liquid memecoin, with locked liquidity exceeding $12 million, has attracted more than 78,000 on-chain holders.
Legal Challenges and Controversies
Despite its growing popularity, PNUT has faced significant challenges, particularly stemming from legal actions taken by Mark Longo, also known as the squirrel dad. Longo issued cease and desist letters to both Binance and Coinbase, alleging unauthorized use of his former pet’s image. Furthermore, Longo has faced accusations of being involved in memecoin scams, having allegedly pulled the rug on several projects before launching Justice for Peanut (JFP).
Midterm Expectations
After experiencing a substantial decline of over 71 percent from its peak above $2.4 last month, PNUT is currently testing a crucial support level around the 0.618 daily Fibonacci extension. On the four-hour chart, PNUT price exhibits the potential formation of a double bottom, accompanied by a rising divergence on the daily Relative Strength Index (RSI).
Future Prospects for PNUT
Should the broader crypto market sentiment turn bullish once again, PNUT’s price could easily surge towards the $1 mark, setting the stage for a new upward rally towards a fresh all-time high.
Conclusion
In conclusion, while PNUT has shown remarkable potential and attracted substantial interest from traders, it faces significant challenges, including legal disputes and market volatility. As cryptocurrency enthusiasts and investors continue to monitor its progress, PNUT’s journey will likely remain a subject of interest in the ever-evolving crypto space.
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