PIPPIN has shown a strong recovery, reaching a 159% increase and entering the top 100 cryptocurrencies due to high activity in derivatives markets and on-chain trading. This surge has generated significant token inflows on exchanges and a record level of open interest.
PIPPIN’s recent price movement was accompanied by on-chain fundamentals that partially support the 159% rally. In particular, a low Network Value to Transactions (NVT) ratio stood out, suggesting that network activity grew in line with the price and not solely due to speculation about token usage.
However, the main driver of the advance appears to have been the derivatives market. Open interest expanded to approximately $188.24 million, a level that reflects aggressive long positioning and significant leverage. In this context, the rise fits into a dynamic where perpetual contracts amplify price movements.
From a technical perspective, the indicators supported the momentum. Bullish MACD crossovers and positive readings from the Awesome Oscillator were noted, while the token managed to break out of recent consolidation ranges. Regarding key levels, the market was defending support zones around $0.157 and $0.33, while a firm break above $0.518 was identified as the potential catalyst for targets between $0.74 and $0.80, with a possible extension towards $1.00.
Selling pressure for PIPPIN, positioning, and downside risks
However, the advance was not without signs of caution. Reports highlighted that around $17 million worth of tokens were transferred to exchanges, a move interpreted as profit-taking that increases the supply available for sale. If these inflows continue, they could exert additional pressure on the price, especially in a highly leveraged environment.
At the same time, more than 65% of traders were reportedly shorted, according to some summaries, creating a double-edged market structure. On the one hand, a short squeeze could fuel rapid gains if the price breaks through key resistance levels; On the other hand, such concentrated positioning could accelerate declines if sentiment shifts and support begins to weaken.
In terms of critical levels, analysts warned that failing to hold the $0.338–$0.35 range would weaken the bullish case. A break below $0.292 could open the door to a rapid correction of around 31%.
For traders, it is essential to monitor exchange inflows, funding rates, open interest trends, and portfolio concentration metrics, as these factors will determine whether demand can continue to absorb selling pressure or if the advance will abruptly stall.
