Peanut the Squirrel (PNUT), a memecoin, has recently experienced significant whale accumulation, with a single investor purchasing 10 million PNUT tokens from Binance for over $6 million.
This acquisition has positioned the whale to hold 1% of the total supply of PNUT. Following this event, the price of PNUT rebounded from a short-term support level of $0.6, witnessing a 20% increase within 24 hours.
Despite this surge, the token has faced challenges since its peak of $2.5 during the U.S. elections in November, which was followed by a steep decline of over 75%.
While PNUT has maintained the $0.6 support since mid-December, its potential for a stronger recovery remains uncertain. Key technical indicators, such as the Chaikin Money Flow (CMF) and Relative Strength Index (RSI), have shown signs of demand but remain below critical averages, indicating that capital inflows are not robust enough to ensure a sustained recovery. The price faces resistance at $0.8, which could hinder further gains unless a decisive breakout occurs.
On-chain metrics reveal a bearish sentiment, with social media interest and weighted sentiment at record lows. Although over 80,000 users continue to hold PNUT, the market is currently characterized by more selling than buying activity.
Overall, while whale activity has sparked a temporary price increase, the prevailing bearish indicators suggest that a significant recovery for PNUT may be delayed unless broader market conditions improve in early 2025.
