PIPPIN Faces Pullback After Record Rally: What's Next for the Coin?

PIPPIN has retreated significantly from its peaks, currently trading at $0.27 after climbing to an all-time high of $0.78. This pullback marks a dramatic reversal from the token’s spectacular four-week rally that captured market attention earlier. The 24-hour trading volume has moderated to $3.31 million, with market capitalization settling around $273.27 million. Despite the cooling sentiment, the underlying market structure reveals dynamics worth examining before dismissing the token entirely.

The Setup That Fueled the Earlier Surge

Before reaching its peak, PIPPIN had spent most of early 2025 consolidating between $0.010 and $0.055—a prolonged sideways pattern that lasted from February through mid-November. This extended base formation created conditions ripe for either a breakout or continued stagnation. The shift arrived around November 24 when price broke decisively above resistance, initiating a sustained weekly advance powered by expanding volume and aggressive buying pressure.

At the height of the rally, the token recorded staggering gains: 38% daily, 165% weekly, and approximately 1,535% over 30 days. That explosive movement was driven by multiple concurrent forces—accumulation during the base phase, constrained on-chain supply, and aggressive derivatives positioning.

Derivatives Data and Liquidation Pressure

The earlier surge was amplified by derivatives market dynamics. Data showed that over 72% of open PIPPIN positions were shorts, creating significant liquidation risk as prices climbed. When the breakout materialized, the unwinding accelerated sharply. Short liquidations exceeded $4 million within 24 hours, while long liquidations remained near $1 million, according to Rekt data, generating cascading buying pressure.

Funding rates during the rally demonstrated extreme positioning: negative funding rates near -0.5282% across volatile moves indicated shorts were paying longs, encouraging additional short accumulation and compounding liquidation vulnerability as momentum built.

Liquidity constraints exacerbated these moves. The largest decentralized pool on Raydium contained approximately $10.3 million in depth, while open interest climbed near $208 million—a ratio that allowed rapid price expansion once momentum ignited but also set the stage for equally sharp reversals.

On-Chain Supply Dynamics and Concentration Risk

Exchange outflows had reduced near-term sell pressure during the rally phase. Around 26 wallets withdrew approximately 44% of circulating PIPPIN supply from exchanges, tightening available inventory. Simultaneously, roughly 50 wallets linked through HTX-related routes accumulated close to $19 million worth of tokens through coordinated purchases.

However, concentration remained a critical vulnerability. Approximately 80.66% of the token supply was held by top 100 addresses, meaning large transfers could trigger material price swings. Historical precedent supports this concern: on December 1, a single transfer and sale of 24.8 million PIPPIN coincided with a 26% intraday decline, illustrating how concentrated holdings amplified volatility.

Technical Levels Define Risk and Opportunity

The Relative Strength Index on higher timeframes had reached near 95 during the peak—a deeply overbought reading that historically precedes consolidation or pullback phases following rapid expansion. From current levels, key Fibonacci retracement support zones merit monitoring: $0.23 at the 50% level, $0.28 at the 61.80%, and $0.36 at the 78.60% retracement.

Upside fibonacci extensions suggest potential resistance targets, should momentum stabilize: $0.60, $0.67, and $0.76 represent zones where sellers may re-establish control.

The Current Crossroads

PIPPIN’s journey from a months-long consolidation to record highs and back to current levels illustrates the volatile nature of emerging tokens with constrained liquidity and concentrated holdings. While the earlier breakout demonstrated genuine momentum, the pullback reflects the precarious balance between derivatives-driven flows, on-chain supply tightness, and technical extremes. Traders should remain alert to whether support levels hold or continue deteriorating.