Peanut the Squirrel (PNUT), the meme coin that recently surpassed a $2 billion market cap, has experienced a sharp 30% price drop in the past week, bringing its value down to $1.36. However, emerging signals suggest that PNUT’s recovery might be just around the corner.

While some traders may wait for further discounts, this analysis indicates that the opportunity to buy at these lower levels could be closing fast.

Bearish Sentiment Around Peanut the Squirrel Could Fuel Bounce

One key indicator hinting at a potential PNUT recovery is the Weighted Sentiment, which evaluates market perception using social volume. A positive sentiment typically reflects bullish market commentary, often driving increased demand and price growth. Conversely, negative sentiment signals bearish sentiment across the market.

However, extreme readings in Weighted Sentiment can trigger contrarian moves. For instance, overly bullish sentiment might precede a price correction, while extreme negativity often sets the stage for a rebound.

According to Santiment data, PNUT’s Weighted Sentiment has plunged to a historic low of 0.12. This deeply bearish sentiment suggests market pessimism, but its extremity could fuel what’s known as a “hated rally,” where overwhelming negativity ignites an unexpected recovery.

Further, the Relative Strength Index (RSI) is another indicator suggesting that the Solana meme coin’s value could erase part of its losses. The RSI is a technical oscillator that uses the speed and size of price changes to measure momentum.

When the reading drops, the momentum is bearish. Conversely, if the RSI reading rises, the momentum is bullish. 

On the 1-hour chart, even though the indicator is below the 50.00 midpoint, the rating has increased from yesterday. Should this rating continue to surge, then PNUT’s price might rise higher than $1.36.

PNUT Price Prediction: Rally Toward $1.94 Begins

Looking at the same 1-hour timeframe, BeInCrypto observed that the trading volume around PNUT has increased. However, it is important to note that both buyers and sellers are still involved in transacting the token.

Still, it appears that bulls are defending the price at $1.31. If this remains successful, then PNUT’s price could rally toward $1.64 in the short term. In a highly bullish situation, PNUT recovery could see the price climb to $1.94.

On the other hand, if selling pressure increases, this might not happen. Instead, the meme coin’s value could drop to $1.26 in the short term.

The cryptocurrency industry is abuzz with speculation about the appointment of a potential “Crypto-Czar” in the White House. It comes as President-elect Donald Trump considers creating the role of an advisor to guide federal policy on blockchain and digital assets.

Charles Hoskinson, co-founder of Ethereum and founder of Cardano, proposed Coinbase CEO Brian Armstrong as the ideal candidate for the position. This proposal sparked a spirited debate within the crypto community.

Brian Armstrong: Hoskinson’s Vision for a Crypto-Czar

In a post on X (formerly Twitter), Hoskinson emphasized the importance of appointing a neutral and knowledgeable individual to the role. He highlighted Armstrong’s leadership at Coinbase, the largest cryptocurrency exchange in the US. This, among others, is evidence of his ability to navigate regulatory challenges and foster innovation.

“With respect to the idea of a Crypto-Czar at the White House, I feel the role needs to be filled with someone who is neutral, works with all protocols, and has a deep understanding of why crypto is special,” Hoskinson wrote.

The Cardano executive criticized the current administration under President Joe Biden for its regulatory stance. He called them out for “unfair tactics” and “regulation through enforcement.”

Hoskinson argued that Armstrong could unite the crypto industry and lead legislative efforts to modernize the US regulatory framework for digital assets.

He also shared his plans to assist lawmakers directly, leveraging his experience in helping Wyoming pass 31 crypto-friendly laws. Hoskinson announced Operation Baseline, an initiative by IOHK’s policy division to identify inefficiencies and opportunities in the American cryptocurrency industry.

Community Reactions: Support and Criticism

Hoskinson’s endorsement of Armstrong has drawn mixed reactions. One X user, Maxime, voiced concerns about Armstrong’s association with centralized entities.

“I don’t like the turn personally because Brian is bringing centralization in full swing in crypto. Whether it is technically through Base or via facilitating pension funds like BlackRock with custody,” Maxime argued.

This critique reflects broader apprehensions about Coinbase’s growing influence. Some are concerned about the perceived alignment of its business model with traditional financial (TradFi) institutions.

However, other voices in the crypto community see Armstrong as a pragmatic choice. Ed n’ Stuff, another commenter on X, supported the idea.

“It’s important the crypto czar is not seen as partisan, so everyone buys in (not favoring any chain/ecosystem). A major CEX founder that is involved in a bit of everything makes sense,” the user quipped.

This sentiment highlights Armstrong’s potential to appeal to diverse stakeholders in the crypto space. Besides Coinbase’s Armstrong, another potential candidate may be Brian Brooks, the former Binance.US CEO. Brooks also has a history of serving as Coinbase CLO.

Brooks has extensive experience working with the overlap between cryptocurrency and TradFi, making him a strong contender. His tenure at the US Office of the Comptroller of the Currency (OCC) was marked by initiatives to integrate digital assets into the banking system. These, among other achievements, earned him respect across the industry.

Both Armstrong and Brooks bring distinct strengths to the table. Armstrong’s experience as a pioneer in the crypto exchange space gives him a deep understanding of the market. Meanwhile, Brooks’ regulatory expertise positions him as a bridge between policymakers and the crypto industry.

Nevertheless, Trump’s consideration of a dedicated crypto advisor reflects the growing importance of digital assets in the global economy. Hoskinson believes this move presents a unique opportunity for the US to position itself as a global leader in blockchain innovation. He called on the industry to unite behind a shared vision.

“The president’s goal is to make America the best place in the world to start and run a cryptocurrency and blockchain business,” Hoskinson said.

It remains to be seen whether more candidates will join the race for a Whitehouse Crypto-Czar. Notwithstanding, this debate reflects the challenges of balancing innovation with regulation. While Armstrong’s selection would signal a commitment to industry growth, it also raises questions about the role of centralization in a space rooted in decentralization.

The eventual appointment is expected to help shape the trajectory of US crypto policy for years to come. Whether it is Armstrong, Brooks, or another candidate, the decision will reflect how the next administration plans to address the crypto economy’s complexities while fostering innovation.