PIPPIN price crashed by more than 13% in the past 24 hours, extending the losses to about 36% this month. The memecoin underperformed the crypto market, which was nearly flat over the past few weeks.
Technically, the memecoin is undergoing a deeper correction, which is evident on the charts and in the chain activity.
Smart money offloading PIPPIN
As per StalkChain data, PIPPIN was the most sold token in the last 24 hours. The smart money offloaded more than $675K Pippin [PIPPIN] during this period.
This withdrawal of capital from the memecoin resulted in the sell pressure that brought the memecoin down.
Other memes in this category were Fartcoin [FARTCOIN], WHITEWHALE, and PENGUIN. Inclusion of USDC in this list meant that traders were locking in profits or cutting their losses.
Source: StalkChain
Again, the correction was market-wide, specifically for memecoins. This is because traders were moving from the high-risk tokens like memes to more stable assets like Bitcoin [BTC] and Ethereum [ETH].
PIPPIN price remains choppy
While the smart money is bearish with their actions, the PIPPIN price has been choppy since reaching a peak around $0.70. The memecoin had broken below the ascending trendline, which indicated the price was trading in a bearish structure.
Even the small pumps that were happening between mid-December and now were insignificant, as the price could not break past this consolidation.
The Choppiness Index (CHOP), which was at 49, showed that the PIPPIN price was bouncing between $0.28 and $0.50. This is after peaking around 60, which meant that the price had no clear direction yet.
Source: TradingView
Furthermore, the seller’s momentum was contributing to this decline in the price of PIPPIN. The red bars were gradually increasing in size as the price approached the support level around $0.29.
Historical data showed that every time the PIPPIN price hit the aforementioned support level, it was followed by a bounce back. That suggested it could rise to $0.40 as the first target.
Conversely, a breakdown of the level would accelerate the decline, increasing the losses. However, this was not guaranteed, as bets to the upside were hitting the markets.
Liquidity magnet sitting above price action
As per CoinGlass data, traders were now betting on price, activating the orders at the $0.39 level. Positions worth thousands of dollars were clustered between $0.39 and $0.42, price magnets that could pull PIPPIN toward this zone.
Source: CoinGlass
The clusters came after the liquidation of long orders sitting below $0.36. The long squeeze accelerated the breakdown on the charts.
That said, choppiness on the charts, smart money’s selling pressure, capital rotation, and a long squeeze all contributed to the price crash.
Final Thoughts
- PIPPIN price declined by 13%, extending the monthly losses to 36%.
- PIPPIN could bounce back to $0.39, where liquidity clusters were price magnets.
Source: https://ambcrypto.com/pippin-down-13-smart-money-selling-long-squeeze-and/