After retracing and dipping below the supply zone at $0.4 to $0.34, PIPPIN bounced back. The memecoin surged 20.27% to a local high of $0.48 before slightly retracing to $0.451 as of this writing.
Over the same period, PIPPIN’s market cap recovered from $308 million dip to $443 million, marking a $100 million jump.
But what triggered the rebound?
Demand for PIPPIN Futures rebounds
After PIPPIN breached the $0.4 support level, traders in the Futures market took the opportunity to add to existing positions.
According to CoinGlass, the memecoin’s Open Interest surged 24.29% to $150.73 million, but derivatives volume dropped 16% to $551 million.
Such a combination suggested existing holders added to or opened new positions while the market recorded less opposing activity.
Source: CoinGlass
New long positions were added, while exiting ones continued to hold. In fact, significant capital flowed into Futures.
The memecoin saw $168.44 million in Futures inflow, compared to $165.35 million in Sell Volume. As a result, Futures Netflow surged 136.74% to $3.09 million, a clear signal of buyer dominance.
Source: CoinGlass
Meanwhile, PIPPIN’s Long/Short Ratio jumped to 1.0251, but averaged around 0.5 across Binance and OKX. Often, a Ratio above 1 suggests that investors mainly deployed capital into taking long positions.
Buyers defend key levels
In the Spot market, as PIPPIN dropped below its critical zone, buyers stepped in and bought the dip.
According to TradingView, PIPPIN’s liquidity significantly dropped. Volume dropped to 3 million over the past 24 hours, compared to the 14-day moving average of 24.64 million.
Source: TradingView
The A/D Moving Average is at 10.44 million at press time, indicating reduced market participation.
Despite the reduced liquidity, buyers have dominated the market. At press time, Buy Sell Volume sat around 881k, while Buy Volume was 811.33k compared to 70.44k in sell volume.
The market shows extreme buying dominance with 98% while sellers controlled only 2% of the total.
Is the uptrend momentum sustainable?
PIPPIN rebounded as buyers stepped in across the Spot and Futures market and defended $0.4 zone.
As a result, the memecoin’s Relative Strength Index (RSI) made a bullish crossover, hiking to 72. At the same time, its Stochastic RSI also made a bullish crossover at 51, edging into the bullish zone.
Source: TradingView
When these two momentum indicators make a bullish crossover, it signals strong upward momentum with buyers dominating the market.
Often, such a combination positions the memecoin for a potential continuation of the trend. Therefore, if buyers continue to accumulate, PIPPIN could clear the $0.5 resistance and make another high.
Conversely, if profit taking picks up, another pullback could emerge, with $0.4 acting as key support.
Final Thoughts
- Pippin surged 20.27% after successfully defending $0.4 and jumped to a local high of $0.48.
- PIPPIN is well-positioned to reclaim $0.5 and target another eye if buying momentum.
Source: https://ambcrypto.com/pippin-surges-20-defends-key-support-is-a-new-ath-in-sight/
