PIPPIN price has staged a powerful rally, pushing the meme coin closer to its all-time high. While momentum remains strong, continued investor selling could test the sustainability of this advance.
The question now is whether PIPPIN can sustain demand and convert resistance levels into lasting support.
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PIPPIN Is Not Overheating
The Network Value to Transactions, or NVT, ratio remains relatively low despite the recent price spike. Historically, sharp rallies in speculative assets push the NVT ratio higher. A rising NVT often signals that market value is outpacing transaction activity, suggesting overheating conditions.
In PIPPIN’s case, the muted NVT reading indicates that network usage is expanding alongside price. Transaction volumes have kept pace with market capitalization growth. This alignment reduces the probability of an immediate correction driven purely by overvaluation concerns.
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PIPPIN NVT Ratio. Source: GlassnodeA low NVT ratio during a rally can signal healthy participation. It suggests that price gains reflect genuine user engagement rather than excessive speculation. For investors focused on on-chain fundamentals, this metric supports the view that PIPPIN’s recent breakout attempt rests on a stronger footing.
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Will Investors’ Selling Affect PIPPIN?
Exchange data shows that holders have been actively selling over the past several days. Since the beginning of the month, approximately 41.95 million PIPPIN tokens have moved onto exchanges. At current prices, this represents more than $17 million in realized supply.
Such selling typically reflects short-term profit-taking following rapid price appreciation. However, distribution alone does not confirm a bearish reversal. In strong uptrends, elevated exchange balances can coincide with aggressive demand from new entrants absorbing available supply.
PIPPIN Balance on Exchanges. Source: GlassnodeThe combination of rising prices, steady NVT readings, and exchange inflows may indicate absorption. Buyers appear willing to offset sell pressure without triggering a breakdown. This dynamic is often observed in early-to-mid bull market phases, when demand quietly outpaces distribution despite visible profit-taking.
PIPPIN Price Breakout Likely
PIPPIN price has surged 159% over the past five days, trading at $0.419 at publication. The meme coin stands out as the week’s top-performing digital asset. Technical charts show the token nearing a breakout from a descending broadening wedge pattern.
The wedge formation projects a potential 221% advance upon confirmation. A decisive move above $0.518, flipped into support, would validate the breakout structure. Even if PIPPIN falls short of the full projection, momentum could still drive price beyond its previous all-time high of $0.720 and toward $0.800.
Risk factors remain relevant for short-term traders. If the NVT ratio begins rising while exchange selling persists, transaction activity may weaken. A failed breakout could trigger a pullback toward $0.267 or even $0.186. Such a decline would invalidate the current bullish thesis and shift momentum decisively lower.
Source: https://beincrypto.com/will-pippin-price-note-breakout-despite-selling/
