Solana (SOL) based memecoin inspired by a squirrel pet dubbed Peanut the Squirrel (PNUT) has continued to make significant waves in the cryptocurrency industry. The small-cap memecoin project, with a fully diluted valuation of about $683 million and a 24-hour average trading volume of about $1.1 billion, dropped more than 50 percent two weeks to trade about $0.68 on Monday, December 23, 2024, during the mid-European session.
After an impressive rally during and after the US 2024 elections, PNUT price has significantly slowed down in the recent past. Moreover, the ongoing Bitcoin correction has sent bearish shivers to the entire altcoin industry, resulting in further recovery of the BTC dominance to hover above 58 percent at the time of this writing.
PNUT Fundamentals
The PNUT memecoin has gained significant attention from speculative traders in the past few weeks following the notable listing on major cryptocurrency exchanges. Following the successful listing on the Binance exchange, which has over 240 million global users, Coinbase Global Inc. (NASDAQ: COIN) recently announced the listing of PNUT.
As a result, the highly liquid memecoin with a locked liquidity of over $12 million, has attracted over 78k on-chain holders.
However, the PNUT memecoin has faced significant headwinds from legal action filed by Mark Longo, alias the squirrel dad. Recently, Longo issued a cease and desist letter to Binance and Coinbase for using his former pet’s image without approval.
Longo has been accused of being a memecoin scammer after allegedly rug-pulling several projects before launching Justice for Peanut (JFP).
Midterm Expectations
After dropping more than 71 percent from a peak of above $2.4 last month, PNUT’s price is currently retesting a crucial support level around the 0.618 daily Fibonacci extension. In the four-hour time frame, the PNUT price has been forming a potential double bottom, coupled with a rising divergence on the daily Relative Strength Index (RSI).
In case of further crypto bullish sentiment, PNUT’s price could easily rally towards $1 and set the pace for a new pump towards a new ATH.
