The memecoin PIPPIN has recently captured significant attention, experiencing a robust rebound that saw it clear previous losses and achieve a local high. This impressive surge is largely attributed to a renewed wave of market interest, prominently led by large investors and a collective bullish sentiment across both spot and derivatives markets, signaling a potential for sustained upward momentum.
Whale Accumulation Fuels Breakout
PIPPIN recently broke out of a consolidation range between $0.28 and $0.35, surging to a local high of $0.415. This rally saw its daily charts register a 27.57% increase, accompanied by a 21% jump in trading volume to $56.5 million and a 25% rise in market capitalization to $388 million. A key driver behind this revival is significant accumulation by institutional players, or "whales." Reports indicate that entities like Wintermute resumed substantial buying activity, accumulating over $300K in tokens. Another automated trading bot also amassed more than $2 million in PIPPIN near its local bottom. Importantly, these large holders maintained their positions even after the initial price jump, signaling confidence in further gains. This aggressive spot accumulation was further evidenced by a 191% fall in Spot Netflow to -$1.45 million, indicating more tokens flowing out of exchanges than in, reducing circulating supply and easing market pressure.
Derivatives Market Reflects Strong Bullish Bias
The bullish sentiment for PIPPIN extends deeply into the derivatives market, providing further validation for its upward trajectory. Derivatives volume skyrocketed by 156% to $712.56 million, while Open Interest (OI) climbed 21% to $101 million. These increases in tandem point to heightened market participation and significant capital inflows. Futures positions saw a net inflow of $7.83 million, reflecting a greater number of long positions being opened compared to closed. Complementing this, the Long/Short Ratio surged to 1.01, indicating a clear preference for long positions among Futures traders. This strong demand for longs underscores a prevailing expectation among market participants that PIPPIN's price will continue to rise in the near term.
Technical Indicators Point to Sustained Momentum
Analysis of PIPPIN's technical indicators further reinforces the positive outlook. The Relative Strength Index (RSI) has climbed to 56, entering bullish territory and suggesting increasing buying pressure. Simultaneously, the Relative Vigor Index (RVGI) has made a bullish crossover, rising to -0.06, which signals strengthening upside momentum. These indicators collectively suggest that buyers are currently in firm control of the market. Should this buying activity persist, PIPPIN is poised to challenge the $0.45 mark and potentially target the $0.5 resistance level. However, a potential reversal due to profit-taking could see the memecoin retrace towards the $0.34 level.
