Peanut the Squirrel (PNUT) Price Prediction: Can It Hit $1 After a 50% Crash?

Solana-based memecoin Peanut the Squirrel (PNUT) has taken the cryptocurrency world by storm, thanks to its quirky inspiration—a pet squirrel. With a fully diluted market valuation of about $683 million and a 24-hour trading volume of $1.1 billion, PNUT quickly became a hot topic among traders. But despite its early success, the memecoin has recently hit a rough patch, dropping over 50% in just two weeks.

As of Monday, December 23, 2024, PNUT was trading around $0.68 during the mid-European session.

Keep reading to find out what’s really going on with PNUT and what lies ahead for this rising star.

The Rally Has Slowed

PNUT experienced a strong rally during and after the US 2024 elections, but its price has slowed considerably recently. The ongoing correction in Bitcoin’s price has affected the entire altcoin market, causing Bitcoin’s dominance to rise above 58% at the time of writing.

This downturn has hit many altcoins, including PNUT, which is struggling to maintain its momentum.

PNUT Fundamentals

Despite the price drop, PNUT has gained significant attention from speculative traders, especially after being listed on major cryptocurrency exchanges. After its listing on Binance, with over 240 million global users, PNUT was also recently listed on Coinbase Global Inc. (NASDAQ: COIN).

This exposure has helped attract interest, with PNUT now having over 78,000 on-chain holders. With more than $12 million in locked liquidity, PNUT remains highly liquid and continues to draw traders.

Legal Issues Loom Large

However, the project faces serious legal challenges. Mark Longo, also known as “the squirrel dad,” issued a cease-and-desist letter to Binance and Coinbase for using his pet’s image without permission. Longo has been accused of running scams in the memecoin space, with allegations of “rug pulls” on several projects before launching Justice for Peanut (JFP).

These legal troubles have raised concerns and cast uncertainty over PNUT’s future.

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PNUT Price Action Analysis

PNUT’s price has dropped more than 71% from its peak above $2.40 last month. It is now testing an important support level at the 0.618 Fibonacci extension on the daily chart. On the shorter-term four-hour chart, a potential double bottom pattern is forming, and a rising divergence on the daily Relative Strength Index (RSI) suggests that the price could soon reverse.

If the overall market sentiment turns positive, PNUT could easily rise towards $1 and set the stage for a new all-time high (ATH).

However, its future will depend on resolving the legal issues and the broader market’s performance, particularly Bitcoin’s price movements.

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