During Wednesday’s market session, the crypto market regained bullish momentum as Bitcoin bounced back above $95,000. With investors hoping to revive for $100K BTC soon, the altcoin market witnessed renewed buying pressure. Thus, the emerging Solana-based Memecoin Peanut the Squirrel hints at bottom formation at $1 and potential reversal with a wedge pattern
By press time, the PNUT price had traded at $1.03, with an intraday loss of 4%. According to Coinmarketcap, the asset’s market cap stands at $1.039 Billion, while the $1.404 Billion.
Key Highlights
- The Peanut the Squirrel price is consolidating at $1 hints the buyers actively defending this support.
- The formation of a falling wedge pattern signals a temporary pullback for buyers to regain momentum.
- The PHUT price is 9% away from a major breakout from the current correction.
Peanut the Squirrel Hints End-of-Correction with Wedge Pattern
The meme cryptocurrency behind renowned eastern gray squirrel Peanut witnessed a notable correction in the second highest of November. The correction trend plunged the PNUT price from $2.5 to $1.03 registering a 58% loss.
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The asset’s previous rally was driven by a combination of public outrage and pre-election excitement following the New York Department of Environmental Conservation’s (DEC) decision to take Peanut the Squirrel before euthanizing him. Additionally, Tesla CEO Elon Musk’s tweets criticizing the DEC’s actions further fueled demand for PNUT, driving its price up.
However, the broader market recovery has bolstered the meme coin to shift its downward trajectory to sideways above $1. In addition, the current correction trend shows the formation of a falling wedge pattern narrowing the price between two converging trendlines.
Theoretically, the pattern drives a temporary downtrend before the asset regains momentum for a major breakout.
PNUT Price Set for Potential Breakout
The Peanut the Squirrel currently trades at $1.04 and is 9% away from challenging the wedge’s key resistance. A potential breakout will better confirm bottom formation and bolster buyers for the next leap.
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The post-breakout rally could drive a 140% rally to challenge the $2.5 peak. Moreover, the momentum indicator RSI supports the breakout narrative of a new high formation in its slope, its recuperating bullish momentum.
