After spending nearly 150 days trapped beneath a relentless descending trendline, Peanut the Squirrel (PNUT) finally staged a powerful breakout. It moved above persistent resistance and caused a bullish target that now has traders eyeing the $1.7907 mark. In a great reversal, the rally has increased its chart’s momentum.
The 1D chart shows a dramatic shift in market structure that began in mid-April. PNUT, which had been suppressed beneath a curved descending resistance since late November 2023, reversed course. Indeed, the meme coin burst through the upper bounds of that resistance in a sharp move upward. This breakout has not only invalidated the bearish trendline but has also reintroduced PNUT to price discovery zones not seen in months.
PNUT & 250% Rally
Following the breakout, PNUT surged nearly 280%, rising from below $0.15 to a recent high around $0.56. The breakout was clean, accompanied by a noticeable spike in volume. This is a key confirmation that buyers are accumulating and absorbing any overhead supply. Unlike prior failed rally attempts, this move shows a true change in character. The downtrend was not just paused. It was structurally broken.
From a technical perspective, PNUT’s current structure is incredibly constructive. The prior resistance arc has now become historical, and the bullish impulse that replaced it shows signs of follow-through. Price action forms higher highs and higher lows, a classic bullish signal. With the trend now pointing up, the next logical target is the pre-calculated measured move at $1.7907. This target is derived by projecting the height of the prior downtrend from the breakout point, a standard method to identify post-breakout objectives.
Is a 414% Rally Possible?
Reaching this target would require an additional 414% gain from the current level. However, given the strength of the recent rally and the volume profile supporting it, the climb looks increasingly attainable. Price responsiveness post-breakout is a crucial factor in validating bullish breakouts, and PNUT has checked that box convincingly. Once the breakout occurred, the market didn’t hesitate.
The accumulation volume has visibly spiked. The volume bars show a clear increase in green-dominated sessions, indicating robust buying activity beyond retail speculation. Additionally, it suggests that informed participants may be positioning for a longer-term trend reversal.
Still, traders should be aware that after such a steep move, temporary pullbacks are natural. A short-term consolidation phase would be healthy and could serve to establish a new support base around the $0.40 – $0.50 range. This would allow latecomers to enter before the next leg up, while giving existing holders reassurance that the trend remains intact.
PNUT has decisively transformed its market narrative. From a dormant meme coin, it has now emerged as one of the most technically promising plays on the market. With its breakout holding firm, the $1.79 level might become a probability.
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