- Pippin has plunged about 85.53% from its peak, marking a steep decline in value.
- Pippin whale’s unrealized profit dropped from $6.5M to under $1M amid a price crash.
- Whale sell-offs and $3M liquidations triggered Pippin’s sharp price decline.
Pippin has dropped about 85% from its peak as of today, March 18. Data shared by Lookonchain shows a major investor holding through the decline. The sharp fall reflects a broader cooldown after rapid gains.
Sharp Rise Followed by Steep Drop
The Solana-based AI agency memecoin recorded strong gains in recent months, reaching an all-time high of $0.9011 on February 26. This surge was driven by demand and increased trading activity, with the market cap nearly reaching $900 million, bringing the token closer to the top 100.
However, the upward move did not last. Prices reversed after reaching peak levels. Current market data show the token trading at a significant discount, reflecting a loss of about 85.3% from its high.
In the past day, the memecoin saw a 31% loss, trading at $0.123 at press time, wiping out nearly $200 million of the market cap.
Whale Profits Shrink
On-chain data highlights the experience of one large holder. According to Lookonchain, a wallet identified as BxNU5a spent about $180,000 to acquire 8.16 million Pippin tokens roughly five months ago. By late February, the position was valued at around $6.7 million, with unrealized profits exceeding $6.5 million.
However, the latest update shows a sharp change. The same wallet is still holding the tokens, but its total value has fallen to about $1.1 million. The unrealized profit has dropped to less than $1 million. The shift reflects the token’s rapid price decline over a short period.
What Went Wrong?
Several factors contributed to the sharp drop in Pippin’s price. Trading activity suggests that selling pressure increased after the token reached its peak. Market data shows large red price movements and rising volume during the decline.
Notably, about 50 whale accounts dumped their bags last week when the token reached $0.35, sending it to less than $0.15 within the day.
Second, buying activity slowed. Without enough new demand, the market could not support higher prices. This imbalance pushed the price lower.
Liquidity conditions may also play a role. With a relatively limited liquidity pool compared to total holdings, large transactions can have a strong impact on price. A single large sell order can push prices lower, especially in memecoin markets where depth is often thin.
Leverage Unwind Accelerated the Decline
The price drop was mainly caused by forced selling, not changes in the project itself. Many traders were using leverage, and as prices fell, over $3 million in long positions were liquidated. This triggered more selling, creating a chain reaction that pushed prices even lower.
Now, funding rates have turned negative, meaning short sellers are in control. With less leverage in the market, prices are starting to reflect real demand.
The situation also highlights the risk of holding too much of a single asset. The BxNU5a wallet is heavily invested in Pippin, making it more vulnerable to price swings. While the entry was early, the lack of diversification worsened losses.
Right now, Pippin is trying to stabilize at lower levels. Traders are watching to see if it can hold steady or drop further if selling continues.
Related: PIPPIN Price Prediction: Bulls Defend $0.64 as Open Interest Rebuilds
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Source: https://coinedition.com/pippin-plunges-85-as-whale-profit-collapses-from-7m-to-below-1m/
