The PIPPIN price has seen a significant rise and is bringing the meme coin closer to its historical peak level. Although the momentum remains strong, increased selling among investors may test how sustainable this rise really is.
The question now is whether PIPPIN can sustain demand and turn resistance levels into lasting support levels.
PIPPIN is not overheating.
Network Value to Transactions, or NVT, remains relatively low despite the recent price increase. Historically, significant rises in speculative assets lead to an increase in the NVT ratio. A rising NVT often indicates that the market value is increasing more than transaction activity, which may suggest overheating.
In PIPPIN's case, the low NVT value shows that network usage is growing in line with the price. Transaction volumes have kept pace with the growth in market value. This correlation reduces the likelihood of an immediate correction triggered solely by overvaluation.
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A low NVT ratio during a price increase can signal healthy participation. It suggests that price increases reflect real user participation rather than excessive speculation. For investors focused on on-chain fundamentals, this measure supports the view that PIPPIN's recent attempt at a price breakout has a solid foundation.
Will selling from investors affect PIPPIN?
Exchanges show that holders have sold actively in recent days. Since the end of the month, approximately 41.95 million PIPPIN tokens have been moved to exchanges. At today's rate, this corresponds to more than $17 million in realized supply.
Such sales usually reflect short-term profit-taking after a rapid price increase. However, distribution alone does not confirm a bearish reversal. In strong upward trends, increased exchange balances can go hand in hand with aggressive demand from new investors absorbing the available supply.
The combination of rising prices, stable NVT measurements, and exchange supply may indicate absorption. Buyers appear willing to counteract selling pressure without triggering a collapse. This dynamic is often observed in the early to mid phases of a bull market, when demand quietly exceeds distribution despite profit-taking.
PIPPIN price breakout likely
PIPPIN price has risen 159% over the last five days and is trading at $0.419 at the time of publication. The meme coin stands out as the week's best digital asset. Technical charts indicate that the token is approaching a breakout from a descending expanded wedge pattern.
The wedge pattern projects a potential increase of 221% upon confirmation. A clear break above $0.518, which becomes the support level, will validate the breakout structure. Even if PIPPIN does not reach the entire project, the momentum could still lift the price above the previous peak of $0.720 and towards $0.800.
Risk factors remain relevant for short-term traders. If the NVT ratio starts to rise and sales on exchanges continue, transaction activity may weaken. A failed breakout could trigger a pullback to $0.267 or even $0.186. Such a decline would invalidate the current bullish scenario and clearly reverse the momentum downward.
