PIPPIN ended its correction phase recently, contrary to other memecoins in the market. As a result, PIPPIN initiated a rebound on the charts, one that saw it rally by more than 46% in just 24 hours.
However, the memecoin is yet to fully revert back to its bullish structure. Hence, the question – Will PIPPIN bulls reclaim the trend that started in late November?
PIPPIN attempts to reclaim trendline support
A look at PIPPIN’s price action indicated that the memecoin had lost the ascending trendline support. At the time of writing, PIPPIN’s price was attempting to reclaim this support level, without much strength on the bulls’ side.
The MACD indicator was green as the crypto’s price rose from $0.2251 – A level where PIPPIN had dipped to sweep liquidity below the support. The momentum was there too, with a reading of 0.17 indicating limited strength.
Source: TradingView
A reclaim of the lost support level could ignite a move towards $0.76, which would be a peak for the memecoin. Conversely, the move could be a retest of the support-turned-resistance. This would turn PIPPIN’s price action into a bear market.
Keeping that in mind, it’s worth noting what drove the memecoin’s rally and its impact in the long run.
What fueled the memecoin’s rally?
PIPPIN’s rally was driven by massive short liquidations that amounted to more than 3x those of longs.
According to Coinglass, more than $1.50 million in shorts were liquidated while only $428k in longs were wiped out.
The volume heatmap was green, with Binance Futures leading with a volume of $459 million. OKX, Bybit, MEXC, and BingX, among others, commanded volumes that were less than half of what Binance had.
These results showed heightened PIPPIN trading across the most popular exchanges. This also contributed to the altcoin’s rally.
Source: CoinGlass
Furthermore, the top 100 addresses increased their holdings to 811 million PIPPIN as per Nansen AI. This hike amounted to about 1.1% in only 24 hours.
Also, the liquidation heatmap indicated that a short squeeze accelerated the memecoin’s rally on the charts. This was for the positions that ranged between $0.3856 and $0.4143. At press time, more shorts seemed to be building between $0.42 and $0.45.
Source: CoinGlass
On the downside, longs were being accumulated below $0.40. The most concentrated liquidity clusters were between $0.31 and $0.35.
These levels outlined where PIPPIN could fall to if its price fails to reclaim the lost support level.
Contrasting flows in Futures and Spot trading
Finally, as far as the flow data is concerned, there seemed to be a divergence between Futures and Spot trading. Most of the Futures trading was positive, while that of Spot was negative except for the 12-hour scale.
Source: CoinGlass
To put it simply, PIPPIN is in a wait-and-see phase right now, with its trajectory dependent on the memecoin’s reaction to its support level.
Final Thoughts
- PIPPIN surged by 46% amid mass short liquidations, volume heat-up, and holder accumulation.
- A break above the lost support could reignite bullishness, but failure would invalidate this potential outlook.
