- PNUT surged 4876%, peaking at $2.46, but stabilized with support at $0.5313 and resistance at $0.70-$0.72, per analysts.
- A falling wedge pattern suggests PNUT could target $3.0491 if it breaks $1.6034, with support at $0.5516, says Rose.
- PNUT’s RSI at 42.97 and MACD hint at short-term bullish momentum, though low volumes signal weak buyer conviction.
According to analysts Rose and Gem Insider, PNUT has had intriguing price action. The price movements show a potential bullish movement following the completion of a falling wedge pattern. The token, which surged over 4876% in its early trading days, has since entered a more controlled phase of consolidation.
Volatility and Explosive Growth
Gem Insider noted that PNUT began its surge with a low-volatility phase, maintaining price levels near $0.002. However, a breakout pushed the price to $2.46, a 4876% rally. This upward momentum stemmed from heightened speculative trading.
After reaching its peak, the price retraced, stabilizing between $0.50 and $1.50 before entering a gradual downtrend. PNUT has a support level at $0.5313. The resistance at the $0.70 to $0.72 range limits upward movement, suggesting market hesitation in the short term.
Falling Wedge Pattern Signals Potential Breakout
Analyst Rose noted a falling wedge pattern in PNUT’s current market movement. This bullish reversal pattern, characterized by converging downward trendlines, suggests an imminent upward breakout.
Key support at $0.5516, aligns with the increased buyer activity. A breakout above $1.6034, the critical resistance level, could lead to a potential target of $3.0491, a 300% upside.Fibonacci retracement levels, including 0.618 ($0.6225) and 0.786 ($0.5516), show possible correction zones.
Rose advised waiting for confirmation of a breakout above $1.6034 before considering long positions, emphasizing the importance of a stop-loss below $0.5516 to manage risk effectively.
Indicators and Key Levels
At the time of writing, PNUT was trading at $0.6934, with a session high of $0.7045 and a low of $0.6852. The RSI, at 42.97, is at a bearish level but shows slight recovery. Meanwhile, the MACD shows a bullish crossover, hinting at potential short-term upward momentum.
However, declining trading volumes during the upward movements suggest weak buyer conviction. The $0.6852 support level remains crucial for maintaining any bullish hopes, while a break below this could drive the price further toward $0.6500 or below. According to Gem Insider and Rose, PNUT’s next movements depend on holding support levels and breaking through resistance.