PIPPIN price has seen a strong rise, bringing the meme coin close to all-time highs. Although momentum remains strong, the sustainability of this breakthrough could be tested if investors continue to sell.
The question now is whether PIPPIN can maintain demand and turn resistance levels into durable support.
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PIPPIN is not overheating
Despite recent price increases, the network value to transactions (NVT) ratio remains relatively low. Historically, a sharp rise in speculative assets increases the NVT ratio. A rise in NVT indicates market value is outpacing trading activity and often indicates overheating.
In the case of PIPPIN, the muted NVT reading indicates that network usage is growing with price. Trading volume tracks market capitalization growth. This adjustment reduces the likelihood of an immediate adjustment purely due to overvaluation concerns.
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A low NVT ratio during a rally may indicate healthy participation. This suggests that the price increase reflects true user engagement rather than undue speculation. For investors focused on on-chain fundamentals, this metric supports the view that PIPPIN’s recent breakout attempt is on stronger foundations.
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Will investor selling affect PIPPIN?
Currency data shows that holders have been actively selling over the past few days. Approximately 41.95 million PIPPIN tokens have moved to exchanges since the beginning of the month. At current prices, this equates to more than $17 million in realized supply.
Such selling typically reflects short-term profit-taking following rapid price increases. However, distribution alone does not confirm a bearish reversal. In a strong upward trend, active demand from new entrants can absorb available supply at the same time as exchange balances rise.
A combination of rising prices, stable NVT readings, and currency inflows may indicate absorption. Buyers appear to be hoping to offset selling pressure without causing a breakdown. This dynamic is often observed during early to mid-bull markets when demand quietly exceeds distribution despite obvious profit taking.
Possible PIPPIN price breakout
PIPPIN price has increased 159% in the past 5 days and is trading at $0.419 at the time of publication. Meme coin stands out as the best-performing digital asset this week. The technical chart shows that the token is approaching a breakout from a descending expanding wedge pattern.
The wedge formation predicts a 221% chance of advancement when confirmed. A decisive move above $0.518 would turn into support and validate the breakout structure. Even if PIPPIN falls short of full forecasts, momentum could push the price above the all-time high of $0.720 and towards $0.800.
Risk factors remain important for short-term traders. If the NVT ratio starts to rise amid continued currency selling, trading activity could weaken. A failed breakout could trigger a pullback to $0.267 and even $0.186. Such a decline would invalidate the current bullish theory and cause a decisive decline in momentum.
