Solana’s PNUT Token Nears Key Support: Market Outlook

Peanut the Squirrel (PNUT), a meme-inspired Solana-based cryptocurrency, stands out for its playful branding and community-driven model. But even with a memorable name, the token has been on a downtrend. However, technical analysis shows that PNUT could be close to finding support, which could help it bounce back.

Where’s the Price Headed?

The daily chart for PNUT/USDT shows the clear downtrend, characterized by consistent lower highs and lower lows. The price is below key resistance levels, with the key resistance at 1.58 USDT, and a key support level near 0.55 USDT.

The 1.58 USDT mark has consistently acted as a major barrier, with the price facing rejections at intermediate levels of 0.79 USDT and 0.66 USDT, signaling strong selling pressure. On the support side, the 0.55 USDT zone has served as a key defense point, suggesting the potential for a rebound if buyers manage to reclaim momentum.

Technical Analysis

On the 4-hour chart, PNUT’s price shows bearish sentiment., as lower highs and failed breakout attempts near the 0.79 USDT resistance level highlight the struggle to regain upward momentum. The 30-minute chart further reinforces this trend with key indicators signaling continued pressure.

All the major exponential moving averages (EMAs) — the 20, 50, 100, and 200 EMAs — are pointing down, which means bearish control.

The Moving Average Convergence Divergence (MACD) indicator is negative. The Relative Strength Index (RSI) is around 45.72, which means it could still go down. But the RSI is approaching oversold levels, which could mean a short-term bounce.

What Could Happen Next?

Even though the short-term trend is bearish, analysts say things could change. A bullish breakout above 0.79 USDT could push PNUT toward higher targets, including 0.91 USDT.

Conversely, if the price falls below the critical support level of 0.55 USDT, the bearish trend may intensify, potentially driving the price down to test the next support at 0.50 USDT.

Community Sentiment and Unique Features

PNUT has strong community engagement, zero transaction taxes, and a burnt liquidity pool. Even though it’s in a bearish phase, PNUT’s long-term potential is still there. Its presales brought in over $43 million.

PNUT’s technical indicators suggest caution in the short term. But the community and its unique branding on the Solana blockchain may help it recover in the future. Investors should watch key support levels and wait for clear breakout signals before buying.