Peanut the Squirrel (PNUT) Sees First Major Whale Accumulation, But Is a Recovery Likely?

According to blockchain analytics firm Spot On Chain, Peanut the Squirrel [PNUT] has seen its first major whale accumulation.

A blockchain analytics firm, Spot On Chain, has reported the first major whale accumulation for Peanut the Squirrel (PNUT).

According to the firm, a whale acquired 10 million PNUT from the Binance exchange, valued at over $6 million. With this acquisition, the whale now possesses 1% of the memecoin's total supply.

PNUT price reacted positively to the whale's move, surging 20% in the past 24 hours and bouncing from the $0.6 short-term support. After the U.S. elections in November, PNUT soared to a peak of $2.5 before crashing over 75%.

Despite holding the $0.6 support since mid-December, it remains to be seen if the level will propel the memecoin to a stronger recovery.

PNUT's technical analysis showed some recovery from the 2023 market bottom, but key indicators remained bearish.

The capital multiple factor (CMF) and relative strength index (RSI) both recovered from oversold extremes but were still below key moving averages. This indicated some demand and capital inflows, but not enough to confirm an extended recovery.

As a result, the overhead resistance at $0.8 could halt the recent rebound if the momentum fades.

On the other hand, a decisive move above $0.8 could pave the way for $1 and reinforce a bullish market structure.

However, on-chain metrics painted a bearish picture. The social volume, which measures the memecoin's interest on major social media platforms, had crashed to record lows.

The weighted sentiment has also been negative since late November.

Low market interest and bearish sentiment on the memecoin could delay strong recovery prospects if the negative readings continue.

Despite the bearish signals, over 80K users were still holding the memecoin. However, there was more sell volume than buy volume at the time of writing, indicating short-term bearish sentiment.