PNUT Token Price Plummets 38% After Elon Musk FOMO Effect Fizzles Out

Peanut the Squirrel (PNUT) launched in Nov. 2024, securing attention after its listing on major exchanges. The token's price soared to an all-time high of $2.47

Peanut The Squirrel (PNUT) crypto token launched in late 2024 with a focus on internet culture branding. After its exchange listing, PNUT price soared to an all-time high fueled by speculative trading and the broader appeal of meme tokens.

The token’s branding and Elon Musk’s affinity for meme coins played a role in sparking the initial interest. However, the price gains were short-lived as PNUT’s value quickly corrected. Within 48 hours of reaching its peak, the token’s price plunged 38%.

Here's a closer look at PNUT's price action and the factors that influenced it.

PNUT Price Action: A Meteoric Rise And Rapid Correction

Peanut The Squirrel (PNUT) token debuted on major cryptocurrency exchanges in Nov. 2024, following its launch earlier in the year. The token quickly garnered attention for its branding, which capitalized on internet culture and drew comparisons to other meme coins that rely on hype-driven rallies.

After its exchange debut, PNUT's price soared, fueled by speculative trading activity. The token's price climbed rapidly, reaching an all-time high of $2.47 on some exchanges. This marked a significant increase from its launch price, sparking a windfall for early investors.

Musk FOMO Effect: A Diminishing Force?

Elon Musk's influence on cryptocurrency markets has been a defining factor for meme tokens, and PNUT was no exception. The token initially gained from Musk’s tangential nods to meme culture, which sparked speculative trading activity.

After its record-high price of $2.47, PNUT plummeted to $1.53, marking a 38% loss in less than two days. This correction reflects a broader pattern among meme coins that rely heavily on Musk-driven momentum. Speculative traders often exit quickly, leaving retail investors to face significant losses.

Three factors might explain the fading Musk FOMO. First, market participants increasingly prioritize assets with stronger fundamentals as the cryptocurrency market matures.

Second, Musk’s repeated influence on meme tokens has diluted its novelty. Lastly, the spotlight has shifted to larger cryptocurrencies like Bitcoin, which recently hit record highs, diverting attention from speculative assets.

PNUT Price Set For Another Rally Attempt

The PNUT token price faced a sharp correction after its initial surge and rapid climb to an all-time high. Following the quick downturn, the token’s price started another rally on Nov. 15 after a brief downtrend early in the day.

The token again briefly broke above $2 with a near 30% spike in the day. However, the Peanut The Squirrel crypto token failed to hold above the price mark.

Now, the PNUT price shows a 15% loss from its local top. But the support levels held during the downturn following the initial surge. Peanut The Squirrel token price might still test the resistance levels around $2.2.

Breaking and consolidating above the immediate resistance could help the PNUT token rally to the resistance near $2.61 before correcting.