Crypto has been back to an uptrend since the beginning of the year, with the AI narrative at the forefront.
That said, PIPPIN surged by more than 25% in the last 24 hours, emerging as the second-best performer among the top 100 coins in terms of capitalization.
The memecoin surged alongside other AI-themed tokens like Virtuals Protocol [VIRTUAL], Render Network [RENDER], and Bittensor [TAO], just to mention a few.
Investors are shifting their focus from other altcoin sectors to the AI-themed meme culture. But will this trend be sustainable, especially for PIPPIN?
Can PIPPIN reclaim its December peak?
The charts showed that PIPPIN had been respecting an ascending trendline support since late November. This rally for the memecoin has been in place for more than a month.
Looking at the indicator readings, they emphasized why PIPPIN’s price was up on the day. The On Balance Volume (OBV) was at $42 billion and rising, a sign of capital inflow.
Additionally, the RSI showed that bulls were controlling the trend. However, a reading of 72 suggested a pop could be building. Still, that did not guarantee a correction, as the historical data on the chart showed.
Source: Trading View
As the memecoin trends upwards, an additional 61% move could help it match its peak of $0.7592. But the price has to stay above the support level.
Despite the positivity in price movement, other metrics say that the rally could be under threat. What are the details of this situation?
Why is the rally under threat?
As per data from CoinGlass, traders were leveraging their positions, especially on Binance Futures. The highest leverage was 20X, while the lowest was 5X.
Looking at the data from popular exchanges, there was about $3.81 million in cumulative long liquidation leverage. On the other hand, shorts accounted for $3.07 million. The difference was too minimal, indicating indecision.
Source: CoinGlass
More analysis indicated that some traders could be taking their profits after the short rally. As per Coinalyze, the Long/Short Ratio was at 0.81. This meant that more trades were sold at press time than bought.
Source: Coinalyze
As that is not enough, the number of holders was also declining over the past 7 days. More than 200 holders sold their tokens, despite the price continuing to rise since the start of the year for most memecoins.
Source: CoinMarketCap
With that in mind, it is worth noting that the rally could come to an end. Meanwhile, bulls remain in control, but the hints signal something different could be brewing.
However, confirmation was needed on PIPPIN’s price structure to ascertain a trend change.
Final Thoughts
- PIPPIN rallies 25% amid AI-themed token resurgence.
- PIPPIN’s price rally is under threat as holders start to short the token.
