PNUT Meme Coin Declines 10% Amid Binance Founder CZ’s Warning
Solana-based meme coin Peanut the Squirrel (#PNUT) is experiencing significant selling pressure, correcting 10% in the last 24 hours and extending its weekly losses to over 36%. As of this report, PNUT trades at $1.08, having moved sideways from its all-time high of $1.95 in mid-November.
Technical Analysis
An analysis of the PNUT/USD 12-hour chart shows an increase in selloffs. The current price is positioned below the red line of the Super Trend indicator, which signals a continued downtrend, indicating persistent bearish momentum.
The Super Trend indicator changes color based on trend direction: red indicates a downtrend, while green signifies an uptrend. When the red line appears above the asset's price, it confirms ongoing bearish conditions.
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Courtesy: TradingView
The Relative Strength Indicator (RSI) for PNUT has dropped below the 50-neutral line, confirming increased selling activity. With an RSI of 45.81, PNUT reflects declining buying momentum, suggesting potential further price depreciation.
Currently, PNUT is above the support level of $0.97. A break below this support could lead to a decline to $0.55, and if that level fails, it may drop to its all-time low of $0.03.
Binance Founder CZ Critiques Meme Coins
Changpeng Zhao, founder of Binance, has urged the crypto community to focus on real-world projects instead of meme coins. On November 26, he expressed dissatisfaction with the meme coin ecosystem on X, stating that meme coins have become "a little weird."
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
Zhao's followers supported his call for prioritizing the development of decentralized applications (DApps) over hype-driven projects. However, critics pointed out Binance’s role in listing meme coins that lack clear utility.
Some users questioned why Binance Futures continues to list new meme coins, noting that after the listing of WHY and CHEEMS on November 26, their market prices crashed within a day.
Following Zhao's comments, selling pressure intensified across the sector, with top meme coins like Dogecoin (#DOGE), Shiba Inu (#SHIB), Pepe Coin (#PEPE), and Bonk (#BONK) experiencing declines of 10-15%.