Can PNUT’s 3942% Rally Continue? Here’s What to Watch

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PNUT , a meme token themed on the Peanut squirrel on the Solana blockchain, is running like a squirrel. Over the past month, it’s soared by a mind-blowing 3942.86%! In the last week alone, it jumped 1528.99%, and just yesterday, it shot up 266.77% to hit $2.18 according to coinmarketcap data. But with every steep rise, there’s always a question – can it last, or is a pullback around the corner?

Volume Spikes, But Signals Get Mixed

PNUT’s recent surge has also brought a huge jump in trading volume – up by 549.06% in just a day! This shows a lot of interest, as more traders are getting in on the action. But there’s a catch: some technical signs hint at a slowdown. A bearish Doji candlestick appeared on the 15-minute chart, which usually means sellers are creeping in, maybe getting ready for a dip. It could be a warning that some investors think PNUT’s recent pace might be hard to keep up.

PNUT in a Cooling Period

Other indicators are also hinting that PNUT’s bull run might not keep going strong without a break. The Balance of Power (BoP) indicator, which shows the tug-of-war between buyers and sellers, is still in positive territory – but it’s slipping. That suggests the buyers might be losing a bit of steam. Plus, the Chaikin Money Flow (CMF), an indicator tracking the money coming into and out of the coin, shows lower inflows lately. Together, these signs might mean the demand isn’t as strong, and PNUT could slow down.

There’s also a demand zone for PNUT between $0.7010 and $0.6499, where analysts think it could catch some support if the price does start to fall. If it dips to that range, there’s a chance it could bounce back up, maybe even gaining up to 41.19%.

What’s Next?

Right now, the sentiment around PNUT is leaning a bit cautious, with slightly more traders betting it’ll drop than rise. Some analysts think PNUT might settle down into a consolidation phase, which is basically a breather before another possible rally. So while PNUT is still hot, there are signs of a cooldown. Will it hold this level or pull back a bit? That’s what traders are watching closely now.