Peanut the Squirrel ($PNUT) – a Solana-origin meme coin – has exploded in price on Gate.io, raising the question: is it truly breaking out, or just faking out? This technical analysis looks at PNUT’s daily and weekly charts on Gate.io to evaluate the breakout, using an accessible tone for all readers. We’ll focus on key chart patterns, support/resistance levels, and indicators like RSI, MACD, and volume on Gate.io (no other exchanges) to judge whether $PNUT is poised for liftoff or flashing a false signal.

Daily Chart: Bullish Breakout Formation

Daily price chart of $PNUT/USDT on Gate.io. PNUT formed a multi-month falling wedge (purple trendlines) and has broken out above the ~$0.25 resistance (red line). A surge over 50% in 24 hours propelled price above the wedge, on high volume. The former ~$0.15 base support (green line) held firm during consolidation.

On the daily timeframe, PNUT’s price action shows textbook breakout behavior. After peaking near $0.60 in mid-January, PNUT entered a descending wedge pattern (a bullish reversal formation) with gradually lower highs and lower lows. The wedge’s resistance trendline (upper purple dashed line) connects the mid-January high down through subsequent lower highs in February and early March. The support trendline (lower purple line) connects PNUT’s pullback lows (around $0.16 in late February and ~$0.13 in early April). This tight price coil indicated weakening downward pressure.

Over the past week, PNUT finally broke out of this wedge. Price blasted through the wedge’s resistance and the horizontal ceiling around $0.25 (marked by the red dashed line), which had capped rallies since early March. This breakout move was dramatic – PNUT jumped over 50% in a single day, a strong signal of bullish momentum. Volume on Gate.io spiked to multi-week highs during the breakout, confirming significant buying interest accompanying the price surge. High volume validates the breakout – it’s not just a slow grind up, but a burst of demand.

Importantly, PNUT’s support in the ~$0.15 area (green dashed line) held firm throughout its consolidation. Despite multiple dips, sellers could not push PNUT below $0.13–$0.15 on Gate.io. This established a solid base from which the current rally launched. Now that $0.25 (prior resistance) has been breached, traders will watch if this level turns into support on any pullback. Holding above $0.25 would indicate the breakout has real staying power.

From an indicator standpoint, the daily Relative Strength Index (RSI) has shot up above 70 following the breakout, reflecting strong upward momentum (often a sign of an overbought condition in the short term, but during breakouts an elevated RSI can persist as price runs higher). The daily MACD (Moving Average Convergence Divergence) confirmed the bullish shift days ago – it flashed a bullish crossover (MACD line crossing above the signal line) early in the breakout, indicating upward momentum was accelerating. These momentum cues support the bullish price pattern, although an extreme RSI suggests PNUT might consolidate or retest support briefly to cool off before continuing higher.

Weekly Chart: Reversing the Downtrend?

Weekly log-scale chart of $PNUT/USDT on Gate.io. After a massive spike and crash in Nov 2024 (ATH ~$2.50, off the chart), PNUT has based out. The weekly downtrend (purple line) from January’s lower high ~$0.46 has been broken, with PNUT closing near $0.23 this week. Key resistance stands around $0.25 (red dashed), with support around $0.13 (green dashed).

Zooming out to the weekly timeframe provides broader context. PNUT is still recovering from an extreme boom-and-bust in late 2024: it briefly hit an all-time high of about $2.50 in November 2024 during a meme coin frenzy, before crashing back down below $0.10 by year’s end. This left PNUT in a prolonged downtrend. However, 2025 so far looks more promising. On the weekly chart (shown in log scale for clarity), PNUT appears to be bottoming out and starting a new uptrend:

• Downtrend Broken: The series of lower highs on weekly candles has ended. After the November collapse, PNUT’s relief rally in mid-January 2025 reached ~$0.46 (far lower than the ATH, but a notable bounce). From there it drifted lower each week. Now, with this week’s surge to ~$0.23, PNUT has broken above the descending trendline that connected those post-ATH lower highs. In other words, the weekly downtrend has been violated to the upside – an early sign the longer-term trend might be turning positive.

• Base Building: Weeks of sideways movement in Q1 2025 established a base in the low-teens (roughly $0.10–$0.15). On the weekly chart, this is evident as a flattening of price declines – weekly closes stabilized around ~$0.13 throughout March and April. That support floor around $0.10–$0.15 has now given PNUT a platform to rebound. The weekly support is marked near $0.13 (green line), just below the recent range. As long as weekly candles continue to close above this zone, PNUT’s base remains intact.

• Momentum Turning Up: Weekly indicators are also improving. The weekly RSI, which was stuck in oversold territory (<30) after the crash, has climbed back toward neutral and beyond, reflecting strengthening bullish momentum on a multi-week scale. The weekly MACD histogram has been ticking upward toward zero, and could be on the verge of a bullish MACD cross if price strength continues – a longer-term buy signal indicating the downtrend’s momentum has flipped. These gradual shifts add credence that PNUT’s larger trend is no longer down.

In summary, the weekly perspective shows PNUT still far below its peak, but signs of a trend reversal are emerging. The current price around $0.23 may seem tiny compared to $2.50 ATH, but what matters now is the trajectory: PNUT is making higher lows and potentially a higher high on the weekly chart for the first time in its Gate.io trading history. That’s an essential ingredient for a true trend change.

Key Support and Resistance Levels

To gauge PNUT’s next moves, it’s crucial to note the key price levels on Gate.io that traders are watching:

• $0.15 Support: This zone (approximately $0.13–$0.15) served as a strong support base during the recent consolidation. It marks the bottom of the daily wedge and weekly base. As long as PNUT stays above ~$0.15 on any dips, the bulls remain in control. A drop below would be a warning sign of a failed breakout.

• $0.25 Resistance-Turned-Support: The ~$0.25 level – PNUT’s March swing high – was decisively broken this week. It now becomes immediate support if the breakout is real. Bulls want to see PNUT hold above $0.25 on pullbacks, confirming that sellers from the old range have been absorbed. If it holds, this prior ceiling could flip into a solid floor for further gains.

• $0.30–$0.35 Next Resistance: Just above, the $0.30 region is the next technical resistance band. This was an interim high during PNUT’s slide in late January (and a psychologically round level). It coincides with the area where the daily wedge breakdown started accelerating. A move above ~$0.30 would likely attract more momentum buyers and could open the door to $0.40+ targets.

• $0.45–$0.50 Major Resistance: On the weekly chart, about $0.45 stands out – near the high of the January relief rally. Additionally, $0.50 is a significant round number and roughly where PNUT traded right after its initial crash. This supply zone around 45–50 cents could be a big hurdle if PNUT’s breakout continues. It’s also the area pointed to by bullish chart patterns (like the measured move of the wedge). Reaching this zone would test PNUT’s true strength – a breakout above $0.50 on Gate.io would be extremely bullish, while failure there might prompt profit-taking.

Outlook: Breakout or Fake-Out?

All the technical evidence on Gate.io leans bullish for PNUT in the near term. The daily chart’s breakout from a bullish wedge, supported by surging volume and positive RSI/MACD readings, suggests a genuine upward thrust. The weekly trend is bending upward out of a long slump, implying this move could have longer-term follow-through. In short, $PNUT appears poised for a breakout rather than a fake-out – so long as it sustains above its new support levels.

That said, traders should remain cautious of the notorious volatility of meme coins. After a 50% single-day jump, a short-term cooldown would be normal. If PNUT were to slip back under $0.25 or (worse) $0.15, that would invalidate the breakout and signal a potential bull trap. Barring such a breakdown, however, the path of least resistance is upward. The technical breakout could carry PNUT toward higher targets in the coming days/weeks, especially if broader market sentiment for meme coins stays positive.

Conclusion

PNUT is breaking out on Gate.io’s charts, backed by improving technicals. As long as the coin holds its support on any pullback, the odds favor this being a true breakout with more upside ahead rather than a false signal. Traders will be watching that $0.25 level and increasing volume – if the strength continues, PNUT’s breakout rally might just be getting started.