• PNUT would present a better buying opportunity around the $1 mark.
• The RSI and the OBV showed rising seller dominance in the lower timeframe charts.

Peanut the Squirrel [PNUT] rallied extremely quickly earlier this month but has been steadily contracting in the past week. The psychological $1.5 and $1 levels are key for traders- the former has been ceded as a support level.

The sentiment across the crypto market was strongly bullish as Bitcoin [BTC] traded at $97k, just a stone’s throw away from $100k. Further gains for Bitcoin are likely, but this could see Peanut the Squirrel trapped in a retracement phase over the coming days.

On the 4-hour chart, PNUT was losing steam. The bulls had valiantly defended the $1.5 zone since the 14th of November. The onslaught from the bears lasted a week, and they succeeded in pushing prices downward.

The Fibonacci retracement levels outlined $1.29, $1, and $0.6 as key support levels for Peanut meme buyers. The RSI on the 4-hour chart had fallen below the neutral 50 level to show that momentum was favorable for the bears.

This could see a downward move toward $1 and possibly $0.6. The OBV agreed with this finding. It was unable to stay above the past week’s lows. This OBV slump highlighted increased selling pressure and increased the chances of a retracement toward $1.

The spot CVD has been in decline over the past week, suggesting that spot market demand has been weakening. This finding aided the one from the OBV, showing that short-term bias was in favor of the sellers.

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

Read Peanut the Squirrel’s [PNUT] Price Prediction 2024-25

Together, they showed a drop in bullish conviction in the lower timeframes. The slow but steady PNUT losses meant that speculators were not eager to go long, even though Bitcoin was approaching the $100k mark.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.