PIPPIN price has shot up nearly 200% over the past week, driven by sharp demand from futures traders. Is the meme coin set to see more gains, or will it crash?
Summary
- PIPPIN price rallied 200% over the past week, primarily driven by a spike in speculative trading.
- The meme coin has confirmed a rounded bottom pattern on the daily chart.
According to data from crypto.news, the Pippin (PIPPIN) price rallied over 200% in the past 7 days to a high of $0.52, which is roughly 7% short of breaking past its previous all-time high of $0.55 hit last month.
The PIPPIN rally appears to be mostly fueled by increased speculative activity, as traders aggressively opened bullish positions in the derivatives market, a trend common among high-volatility meme coins where momentum is often driven by leverage rather than fundamental developments.
Data from CoinGlass shows that PIPPIN futures open interest has jumped to an all-time high of $217 million, nearly four times the amount recorded nearly a week ago. At the same time, the long/short ratio stood above 1, suggesting more investors were betting on further price increases.
Open Interest reflects the total number of outstanding derivative contracts that have not been settled. When a surge in Open Interest comes along with the price rise of an asset, it indicates new money entering the market.
Meanwhile, the aggregated funding rate was positive at press time at 0.0070%, which shows that long position holders were paying fees to short sellers, conditions that help support continued upward momentum.
It should, however, be noted that PIPPIN’s rally came without the backing of any major news or development from the project’s team. Its official X account has not posted anything since August last year.
Despite this lack of official communication, the retail sentiment surrounding the token has remained bullish, as seen in CoinMarketCap.
Another point of concern is the market-wide downturn fueled by Bitcoin’s underperformance over the past trading sessions. Crypto investors are currently spooked by concerns over another U.S. government shutdown and uncertainty over Fed policy direction.
On the daily chart, PIPPIN price appears to be forming the cup of a multi-week cup and handle pattern, which has been developing since late January.
The cup and handle pattern is one of the most bullish continuation patterns that often signals an existing uptrend is likely to resume after a period of consolidation. The cup in itself is also formed of a rounded bottom pattern, which is yet another bullish indicator by itself.
At press time, the PIPPIN price had already broken above the neckline of the rounded bottom formed.
Considering this, the Solana-based meme coin could likely continue to be in an uptrend, with the path of least resistance appearing to be a bullish move to new highs around $0.89, calculated by adding the height of the rounded bottom formed to the point at which the price crossed the neckline.
Looking at technical indicators also gives us a grounded view of such a bullish forecast. Notably, the supertrend indicator has flashed green while the MACD lines have pointed upwards, both signs that bulls still have significant control over the market price action.
Unless the current upward momentum is hampered by macroeconomic headwinds, PIPPIN’s technical breakout is expected to serve as a bullish catalyst.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
