The price of PIPPIN has risen sharply and is now close to its all-time high. However, many investors are still selling, so it may be difficult to maintain this increase.
Now many are wondering if PIPPIN can continue to attract buyers and turn resistance levels into support in the long term.
PIPPIN is not overheating
The NVT ratio, that is, the network value compared to transactions, is still low despite the price increase. Historically, rapid increases in speculative assets raise the NVT ratio. A higher NVT can indicate that the value is growing faster than the usage, which points to overheating.
In PIPPIN's case, the low NVT ratio shows that the network is being used more while the price rises. The transaction volume follows the growth of market value. Therefore, the risk of a rapid correction due to overvaluation decreases.
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A low NVT ratio during an uptrend can indicate healthy activity. It means that the rise reflects real user engagement, not just speculation. For investors focusing on blockchain data, this supports that PIPPIN's rise has a strong foundation.
Does investors' selling affect PIPPIN?
Market data shows that owners have sold a lot in recent days. Since the beginning of the month, approximately 41.95 million PIPPIN tokens have been sent to exchanges. At the current price, this corresponds to over 17 million USD in realized assets.
Such sales often indicate that some want to take quick profits after a strong price increase. However, selling a lot does not automatically mean that the trend is reversing downward. During strong uptrends, new buyers can quickly buy up the tokens that are being sold.
The combination of rising price, stable NVT, and inflows to exchanges may indicate that the market is absorbing the supply. Buyers seem willing to absorb the selling pressure without the price going down. This often happens early in strong uptrends when demand quietly exceeds supply despite some profit-taking.
The PIPPIN price may soon rise sharply.
The PIPPIN price has surged 159% over the past five days and is trading at 0.419 USD at the time of writing. This meme coin has been the best-performing digital asset of the week. Technical analysis shows that the token is close to a breakout from a descending wedge pattern.
The wedge could provide a rise of up to 221% if the breakout is confirmed. A clear breakthrough above 0.518 USD and support there proves the pattern. Even if PIPPIN doesn't reach all the way, it could still exceed the old peak price of 0.720 USD and approach 0.800 USD if the momentum continues.
Short-term risks remain for those trading quickly. If the NVT ratio starts to increase while selling is ongoing, transactional activity may decrease. A failed breakout could lower the price to 0.267 USD or even 0.186 USD. Such a decline would remove the positive momentum, and the price is likely to go down.
