Solana (SOL)-based memecoin, inspired by a squirrel pet named Peanut the Squirrel (PNUT), continues to make significant waves in the cryptocurrency industry. The small-cap memecoin project, with a fully diluted valuation of approximately $683 million and a 24-hour average trading volume of approximately $1.1 billion, fell more than 50 percent in two weeks to close at approximately $0.68 on Monday, December 23, 2024 to be traded during the Central European session.
After an impressive rally during and after the 2024 US elections, PNUT price has slowed significantly in the recent past. Furthermore, the ongoing Bitcoin correction has sent bearish shivers throughout the altcoin industry, resulting in a further recovery of BTC dominance, which was hovering above 58 percent at the time of writing.
PNUT Fundamentals
The PNUT memecoin has received a lot of attention from speculative traders in recent weeks following its notable listing on major cryptocurrency exchanges. Following its successful listing on the Binance exchange, which has more than 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 78,000 holders on-chain.
However, the PNUT memecoin has faced significant headwinds from legal action filed by Mark Longo, aka the Squirrel Father. Recently, Longo sent a cease and desist order to Binance and Coinbase for using his former pet’s image without permission.
Longo is accused of being a memecoin scammer after reportedly exploring several projects before launching Justice for Peanut (JFP).
Medium-term expectations
After dropping more than 71 percent from a peak 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, PNUT price forms a potential double bottom, linked to an increasing divergence on the daily Relative Strength Index (RSI).
In case of further bullish sentiment on crypto, PNUT price could easily rise towards $1 and set the pace for another pump towards a new ATH.