Whale's $6M PNUT Buy – Is This the Start of a Rally?

Peanut the Squirrel—PNUT, has seen a big shift in market activity. A whale recently bought 10 million PNUT tokens, worth over $6 million. This purchase now gives the whale 1% of the total supply. Could this move signal the start of a rally for the memecoin, or is this just a temporary spike?

Whale’s Move and the Price Reaction

Blockchain firm Spot On Chain reported that the whale’s buy triggered a 20% price jump within just 24 hours. The price bounced off the $0.6 support level, showing signs of recovery after a steep drop from $2.5 to $0.6 since mid-December.

Although this rise is significant, the path ahead is uncertain. Key indicators like CMF and RSI have climbed but remain below crucial averages. This suggests more demand, but not enough to sustain a full rally yet.

What’s Next for PNUT?

PNUT now faces resistance at $0.8. If the price can’t break through this level, the rally might fade. However, a strong push above $0.8 could pave the way for $1 and a more bullish trend. On-chain data paints a more cautious picture. 

Social volume has dropped to record lows, and the sentiment has been negative since November. With mixed signals from both the charts and on-chain metrics, it remains unclear whether this whale buy marks the start of a larger rally or if the momentum will stall. Only time will reveal the answer.