The popular meme coin PNUT has shown outstanding performance recently, with a notable 1,610.05% increase over the last month, a 561.21% rise in just seven days, and a remarkable 60% surge within the past day.
Despite this impressive growth, a fresh report from CryptoCrypto raises concerns about PNUT potentially entering a phase of stabilization, signaling a potential pause in its upward trajectory as it gathers momentum for its next bullish cycle.
PNUT Bears Take Over as Doji Pattern Emerges
At the moment, PNUT exhibits early signs of a probable descent on the 15-minute chart, marked by the appearance of a bearish Doji candlestick pattern indicating a potential downtrend.
The emergence of a bearish Doji candlestick often occurs at a local price peak, suggesting a rise in selling pressure as traders contemplate re-entering the market at lower levels. This pattern implies that market participants might be looking to decrease prices to a crucial demand area.
This anticipated decline could lead PNUT to a demand region ranging between 0.7010 and 0.6499, where substantial liquidity could act as a support for a rebound. If PNUT reaches this threshold, there could be a potential recovery of up to 41.19%.
Technical Indicators Signal Temporary Downtrend for PNUT
Present technical indicators point towards a short-term decline in PNUT. As of now, both the Balance of Power (BoP) and Chaikin Money Flow (CMF) indicators depict bearish trends.
The Balance of Power (BoP) gauge, which assesses market dominance between buyers and sellers, currently shows positivity but with a downward trend.
This slight downturn implies that though bullish sentiment persists, prices might dip amid the ongoing downward movement, possibly heading towards the aforementioned demand level.
Likewise, the Chaikin Money Flow (CMF) indicator, which measures liquidity flow, signals a decrease in fund inflows into PNUT. This reduced liquidity could intensify downward price pressure before any potential recovery.
Growing Bearish Sentiment Emerges Among PNUT Investors
Data from Coinglass shows an increasing bearish sentiment surrounding PNUT, with more open short positions compared to long positions.
Currently, the long-to-short ratio stands at 0.987, slightly favoring bears, even though the variance in contract numbers is narrow.
Given that most technical indicators are not backing an upward movement for PNUT, it becomes evident that buying interest has waned. This decline in demand is likely to contribute to further price declines in the short run.