The risk of a potential price decline in Solana-based Pippin (PIPPIN) continues to rise, even after rallying 16% over the past 24 hours.
As of the 17th of April, while the broader crypto market continues to struggle, PIPPIN has posted notable gains and reached a key reversal zone where it has historically faced selling pressure.
At press time, PIPPIN was trading at $0.0355, up 16.05% over the past 24 hours. It also recorded an intraday high of $0.04273 during the same period.
The asset’s notable price surge appears to have attracted significant market participation, as reflected in trading volume, which jumped over 95% to $51.02 million.
PIPPIN price action and key levels to watch
The daily chart indicated that PIPPIN was at a make-or-break level at the time of writing, as the price was facing strong selling pressure at the $0.04276 level.
A level that has recently turned into resistance after previously acting as support. In fact, the price attempted to breach this level but failed, as observed on the 5th of April.
Based on past performance, if PIPPIN fails to break above the $0.04276 level again, there is a high possibility that it could repeat history by experiencing a notable decline in the coming days.
However, a potential rally is only possible if PIPPIN clears this key hurdle and closes a daily candle above the $0.04276 level. If that happens, the price could see an upside move of over 85% and may reach the $0.075 level.
At present, the Average Directional Index (ADX), which measures trend strength, stands at 40.89, well above the key threshold of 25, indicating a strong directional trend.
PIPPIN: Bullish sentiment from short-term players
Data from the derivatives analytics platform CoinGlass reveals that $0.0338 on the lower side and $0.0382 on the upper side are two key levels where traders are overleveraged.
At these levels, they have built approximately $1.46 million worth of long positions and $1.05 million in short positions, indicating a strong bias toward upward price movement.
Derivatives data further strengthened PIPPIN’s bullish outlook. Data from CoinGlass showed that the Long/Short Ratio reached 2.2866, suggesting that traders were heavily skewed toward long positions, reflecting growing confidence in a potential upside move.
However, PIPPIN’s Open Interest (OI) has declined by 8.26% to $59.10 million, disclosing that some traders are closing their positions, which may signal short-term profit booking or a potential slowdown in momentum despite the prevailing bullish sentiment.
Final Summary
- Despite a 16.05% jump, PIPPIN remains at risk of a dip, likely due to its past performance at the $0.04276 level.
- Derivative data reveals that short-term investors are strongly betting on the price to move upward.
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