The PIPPIN memecoin recently demonstrated a significant rebound, surging over 20% to a local high of $0.48 after dipping below a critical support zone. This impressive recovery, which saw its market cap jump by $100 million, was primarily fueled by renewed buyer confidence and strategic market activity across both Futures and Spot markets.
The Futures Market Fuels the Surge
The initial catalyst for PIPPIN's recovery stemmed from a strong resurgence in demand within the Futures market. Following the memecoin's breach of the $0.4 support, traders capitalized on the opportunity to open new positions or bolster existing ones. This was evident as PIPPIN's Open Interest spiked by 24.29% to $150.73 million, signaling a significant influx of capital. Critically, Futures Netflow surged an astonishing 136.74%, reaching $3.09 million due to a higher Futures inflow compared to sell volume. This robust inflow and a Long/Short Ratio often exceeding 1 collectively pointed towards a clear dominance of buyers initiating long positions.
Spot Market Defense and Bullish Momentum
Concurrently, buyers in the Spot market actively defended key price levels, stepping in to "buy the dip" as PIPPIN's price dropped. Despite a noticeable reduction in overall liquidity, buyers firmly controlled the market, with an overwhelming 98% buy volume against a mere 2% sell volume. This strong defensive action at the $0.4 zone, coupled with the Futures market's bullish sentiment, led to positive technical indicators. Both the Relative Strength Index (RSI) and Stochastic RSI recorded bullish crossovers, signaling robust upward momentum and reinforcing the idea of strong buyer dominance. If this accumulation continues, PIPPIN is well-positioned to challenge the $0.5 resistance level, though profit-taking remains a potential factor that could trigger a pullback, with $0.4 serving as crucial support.
