Spot On Chain, a blockchain analysis company, has reported a significant increase in Peanut the Squirrel (PNUT) holdings by a major whale.
As per the firm’s findings, a large investor acquired 10 million PNUT tokens from the Binance exchange, amounting to over $6 million. This accumulation now gives the whale control over 1% of the memecoin’s total supply.
PNUT: Potential for a Rebound?
Following the whale’s acquisition, PNUT experienced a 20% surge over the last 24 hours after rebounding from the $0.6 support level. The memecoin had previously reached a high of $2.5 during the U.S. elections hype in November before plummeting by 75%.
Despite managing to hold above the $0.6 mark since mid-December, it remains uncertain whether this level will serve as a catalyst for a more robust recovery.
Although indicators like the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) witnessed an uptick, they still lingered below critical thresholds. This suggests that while there has been a resurgence in demand and capital inflows, it might not be sufficient to confirm a sustained recovery for PNUT.
There is a looming barrier at $0.8 that could impede the recent uptrend if the current momentum wanes.
Conversely, a breakout above $0.8 could pave the way for a push towards $1 and solidify a bullish market trajectory.
However, prevailing on-chain metrics paint a bearish picture at present. Metrics such as Social Volume, which gauges memecoin interest on various social platforms, have significantly dropped. Additionally, Weighted Sentiment has remained negative since late November.
In essence, the memecoin has been experiencing low market engagement and negative sentiment lately. Should these trends persist, it may hinder any significant recovery in the near term.
Notably, despite 80,000 users holding onto the memecoin, sell volume outweighed buy volume during the latest assessment, indicating prevailing short-term bearish sentiment.
Overall, the outlook for PNUT remains bearish currently. While the recent whale accumulation propelled a price surge, a broader market recovery anticipated in early 2025 could potentially support a more substantial uptrend for the memecoin.