Peanut the Squirrel [PNUT] Price Prediction 2022-2025

Peanut the Squirrel [PNUT] rallied extremely quickly earlier this month but has been steadily contracting in the past week.

Peanut the Squirrel [PNUT] enjoyed a rapid rally earlier this month, but the past week has seen a shift toward consolidation. The psychological levels of $1.5 and $1 are crucial for traders, with the former being breached and serving as a support level.

The broader crypto market displayed strong bullish sentiment as Bitcoin [BTC] traded at $97k, close to the coveted $100k mark. While further gains for BTC are anticipated, they may result in Peanut meme coin experiencing a retracement over the upcoming days.

PNUT drops to the 50% Fib retracement level

Source: PNUT/USD on CoinMarketCap

On the 4-hour chart, PNUT appeared to be losing steam. The bulls had valiantly attempted to defend the $1.5 zone since 14 November.

However, the bears’ onslaught lasted a week, and they ultimately succeeded in pushing prices downward. The Fibonacci retracement levels highlighted $1.29, $1, and $0.6 as crucial support levels for Peanut meme buyers.

The Relative Strength Index (RSI) on the 4-hour chart dipped below the neutral 50 level, indicating that momentum was favorable for the bears.

This may lead to a downward move toward $1 and possibly $0.6. The On Balance Volume (OBV) also supported this analysis. It was unable to sustain itself above the past week’s lows. This OBV decline highlighted increased selling pressure and raised the possibility of a retracement toward $1.

Speculative markets show short-term bearish bias

Source: Coinalyze

The spot CVD has been declining over the past week, suggesting that spot market demand has been weakening. This finding aligns with the analysis from the OBV, indicating that the short-term bias was in favor of the sellers.

The funding rate has also been falling, and the Open Interest has slowly dwindled from $318 million to $261 million in the past four days.

Together, they show a drop in bullish conviction in the lower timeframes. The slow but steady PNUT losses may indicate that speculators were not enthusiastic about going long, despite Bitcoin’s approach to the $100k mark.