The price of PIPPIN has risen sharply, bringing the meme coin closer to its all-time high. The mood remains strong, but continuous selling by investors may test the sustainability of this rise.
Now the question is whether PIPPIN can maintain demand and turn resistance levels into permanent support.
PIPPIN is not overheating.
Network Value to Transactions, or NVT ratio, remains relatively low, even though a spike has been seen in price. Historically, steep price rallies in speculative assets raise the NVT ratio higher. A rising NVT often indicates that market value is growing faster than transactional activity, suggesting overheated conditions.
In the case of PIPPIN, a low NVT value indicates that network usage is increasing alongside the price. The number of transactions has grown in tandem with the market value. This correlation reduces the likelihood of a potential correction, as there are no overheating concerns from the valuation.
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A low NVT ratio during a rally can indicate healthy participation. This means that the price increase reflects real user activity rather than excessive speculation. For investors focused on chain-based fundamentals, this ratio supports the view that PIPPIN's recent breakout is based on a stronger foundation.
Does investor selling affect PIPPIN?
Exchange data indicates that holders have been actively on the selling side in recent days. Since the beginning of the month, approximately 41.95 million PIPPIN tokens have been transferred to exchanges. At current prices, this represents over $17 million in realized supply.
Such selling is typically due to short-term profit-taking after rapid price increases. However, mere distribution does not yet confirm a bearish reversal. In strong uptrends, high exchange balances can reflect the supply being absorbed by new buyers who are willing to face selling pressure.
Rising price, stable NVT level, and exchange investments may together suggest that supply is being absorbed. Buyers seem willing to resist selling pressure without the market breaking downward. This dynamic is often seen in the early to mid-stages of a bull market when demand quietly exceeds distribution, even as profits are visibly taken.
PIPPIN price potential breakout
The price of PIPPIN has risen 159% in the last five days and was at $0.419 at the time of publication. The meme coin stands out as the best digital asset of the week. Technical analysis shows the token approaching a breakout from a descending expanding wedge.
This wedge pattern allows for an increase of up to 221%, if the model is confirmed. A clear rise above the level of $0.518 and a transformation into support would confirm the breakout. Even if PIPPIN does not reach the entire projection, the current sentiment could still push the price above the previous peak of $0.720 and towards $0.800.
Risks remain especially for short-term traders. If the NVT ratio starts to rise while exchange sales continue, event activity may weaken. A failed breakout could trigger a drop towards $0.267 or even $0.186. Such a drop would nullify the current bullish outlook and clearly shift sentiment downward.
