The altcoin PIPPIN has established itself as one of the top performers in the AI agents token market, initiating a surge in power in recent days.
This impressive rise, naturally, has shone the spotlight on the token, and investors are now wondering if PIPPIN can extend this momentum.
PIPPIN investors are becoming skeptical
The Chaikin Money Flow (CMF) indicator shows that PIPPIN has recently benefited from strong inflows. This signals growing confidence and capital entering the market.
However, the indicator is now stabilizing, indicating a slowdown in incoming flows. A decline in the arrival of new capital could therefore limit PIPPIN's ability to maintain its rally, posing an obstacle to its progress.
This change suggests that investors are becoming more cautious. And without consistent support from incoming flows, PIPPIN may struggle to maintain its current momentum.
The AI agent token heavily depends on increases driven by sentiment, and the weakening of the CMF could hinder the token's short-term progress.
The outlook is complicated by the funding rate, which shows a strongly bearish structure. A negative funding rate means that the majority of traders are opening short positions, thus anticipating a decline in PIPPIN. This widespread bearish position reflects low confidence among derivative traders.
Such sentiment can weigh on price action, as short sellers often accentuate downward pressure. Thus, unless market conditions reverse, this pessimistic position could pose a significant obstacle for PIPPIN and hinder any attempts at a long-term rally.
PIPPIN is trading at $0.263, just above the support level of $0.255. Furthermore, this Sunday, December 7, the AI agent token has shown an increase of nearly 42% and briefly recorded an intraday increase of 84%, reflecting strong volatility. However, reaching new highs will require strong conviction from investors.
Reaching $0.500 would require a rally of nearly 90% from current levels. Given the slowdown in incoming flows and a negative funding rate, this target could prove difficult to achieve. Thus, PIPPIN may rather stay close to the support of $0.193, with a pullback towards $0.136 possible if holders start to secure their profits.
However, if bullish sentiment returns and new capital flows back into the market, PIPPIN could break through resistance levels of $0.330 and $0.403. Overcoming these obstacles would thus pave the way towards $0.500, negating the bearish outlook.
The moral of the story: After the rise, the retreat.
