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Whale Grab $6M PNUT – Sign of Imminent Rally?
A recent massive purchase by a whale investor in Peanut the Squirrel (PNUT) has sparked excitement and speculation about the token’s potential future trajectory. The hefty sum of $6 million was invested in buying 10 million tokens, which now accounts for 1% of the memecoin’s total supply.
While this significant development may have generated some optimism among PNUT enthusiasts, it’s essential to take a closer look at the current market situation before jumping into any conclusions. Despite the whale’s substantial investment, on-chain metrics indicate bearish signals are still prevalent.
PNUT has bounced from its short-term support level of $0.6 and surged 20% over the past 24 hours. This price action could be seen as a positive sign, but it is crucial to note that this development is not necessarily indicative of an imminent rally.
The token’s historical performance paints a different picture. PNUT had reached its peak value of $2.5 during the U.S. elections in November before plummeting over 75% subsequently. Despite holding onto the support level since mid-December, it remains uncertain whether this will act as a springboard for a stronger recovery.
Several technical indicators are crucial to consider when evaluating PNUT’s future prospects. The CMF and RSI have soared but remain below their key averages, indicating demand and capital inflows are rebounding, although not strong enough to confirm an extended recovery. In contrast, if the momentum fades away, the resistance at $0.8 could halt the recent rally.
On the other hand, a decisive move above this level could put $1 within reach and solidify a bullish market structure. Nevertheless, key on-chain metrics have been bearish as of late, including record-low social volume across all platforms and an overwhelmingly negative sentiment among users since late November.
It is crucial to consider these mixed signals before making any predictions about PNUT’s future trajectory. A prolonged period of low market interest and adverse sentiment could potentially delay a strong recovery.
Despite the short-term bullish momentum, PNUT still faces significant hurdles in its quest for sustainability.
Source: ambcrypto.com
