PIPPIN has emerged as one of the coins that has shown the strongest performance in the AI agent token market, surging in recent days.
This impressive surge has drawn attention to the token, and investors are questioning whether PIPPIN can sustain this momentum.
PIPPIN investors, skeptical response
The Chaikin Money Flow (CMF) indicates that PIPPIN has recently experienced strong inflows. This suggests increased confidence in the market and a rise in capital inflows.
However, the indicators now suggest that the inflow rate is slowing down. A decrease in new capital may limit PIPPIN's ability to sustain its rally, making upward movement more difficult.
This change suggests that investors are becoming increasingly cautious. Without consistent inflow support, PIPPIN may struggle to maintain its current momentum.
AI agent tokens heavily rely on emotion-based surges, and a weakening CMF could prevent the token from rising further in the short term.
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From a broader perspective, the funding rate shows a very bearish structure, presenting a complicated situation. A negative funding rate indicates that most traders expect a decline and are opening short positions. This widespread bearish positioning reflects low confidence among derivatives traders.
Such sentiment can exert downward pressure on price movements. Unless the market changes, this pessimistic stance could pose significant obstacles for PIPPIN and hinder attempts at a long-term rally.
PIPPIN is currently trading at $0.263, slightly above the support level of $0.255. The AI agent token has still risen nearly 42% today, temporarily recording an 84% increase over the next day. However, strong conviction from investors is needed to break through higher levels.
To reach $0.500, an approximately 90% surge from the current level is needed. Considering the slowdown in inflows and the negative funding rate, this target may be difficult to achieve. Instead, PIPPIN may stay closer to the support level of $0.193, and could drop to $0.136 once holders start securing profits.
However, if positive sentiment returns and new capital flows back into the market, PIPPIN could break through the resistance levels of $0.330 and $0.403. Surpassing these barriers would open the path to $0.500 and could invalidate the bearish outlook.
