PNUT Meme Coin Party Ends? Binance Founder CZ Issues Warning

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As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself both intrigued and concerned by the current state of Solana-based Peanut the Squirrel (PNUT). The meme coin market has always been a rollercoaster ride, but the selling pressure it’s facing right now is quite significant.

Solana-based Peanut the Squirrel

PNUT
$1.08



24h volatility:
4.7%


Market cap:
$1.08 B


Vol. 24h:
$1.54 B

meme coin is facing significant selling pressure correcting 10% in the last 24 hours while extending its weekly losses to more than 36%. As of press time, PNUT is trading at $1.08 and has been continuously moving sideways from its all-time high of $1.95 in mid-November.

As an analyst, I’ve been examining the 12-hour chart of PNUT/USD, and it appears that there’s a rise in selloffs for this meme coin. At present, the PNUT price lies beneath its Super Trend’s red line, which is a crucial tool we use to evaluate the general direction and intensity of asset price movements. This trendline provides us with valuable insights into the potential trajectory of the PNUT price.

The Super Trend line, displayed on the price graph, changes color to reflect the direction of the trend: red for a falling trend and green for a rising trend. When the red line sits above the asset’s current price, it suggests that the downward trend is ongoing, signifying strong bearish energy persisting.

Courtesy: TradingView

The RSI for the PNUT meme coin has fallen below the neutral level of 50, indicating an increase in selling rather than buying. At a current RSI of 45.81, it seems that the buying momentum for PNUT is weakening, potentially leading to further price drops.

At present, the PNUT price stands higher than its critical support at $0.97. If it breaches this support, a potential drop to $0.55 may follow, and if that level is broken, it could touch its record lowest point of $0.03.

Binance Founder CZ Calls Meme Coins Weird

Changpeng Zhao, founder of Binance, is advocating for the crypto community to redirect its attention from meme coins towards more substantial blockchain projects that have tangible real-world implications. On November 26th, he expressed growing discontent with the meme coin market. In a post on platform X, he stated that what was once amusing about meme coins has evolved into something slightly peculiar.

I am not against memes, but meme coins are getting “a little” weird now.

Let’s build real applications using blockchain.

— CZ 🔶 BNB (@cz_binance) November 26, 2024

A significant number of Zhao’s supporters endorsed his stance on focusing more on creating practical Decentralized Applications (DApps) rather than capitalizing on trends. On the other hand, some skeptics accused Binance, a previous cryptocurrency exchange led by him, for listing meme coins without a definite purpose.

Meanwhile, others are wondering why Binance’s cryptocurrency derivatives platform, Binance Futures, persists in listing new meme coins. After the addition of WHY and CHEEMS to the platform on November 26, their market value plummeted drastically within a single day.

As a crypto investor, I’ve noticed a significant surge in selling pressure within the meme coin sector today, following CZ’s comments. Notably, popular meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe Coin (PEPE), and Bonk (BONK) are witnessing a drop of around 10-15%. To be specific, DOGE is at $0.39 with a 4.9% volatility and a market cap of $56.74 billion, SHIB is at $0.000024 with a 2.7% volatility and a market cap of $14.32 billion, PEPE is at $0.000018 with a 5.7% volatility and a market cap of $7.62 billion, while BONK is at $0.000043 with an 8.6% volatility and a market cap of $3.19 billion. The volumes for the past 24 hours are also down: DOGE has $12.41 billion, SHIB has $1.27 billion, PEPE has $4.28 billion, and BONK has $1.10 billion respectively.

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2024-11-26 18:07